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Depositing cash in bank

Krishna (Senior Engineer (QA)) (85 Points)

13 November 2016

I have a doubt regarding depositing cash in bank as the govt has recently withdrawn the 500 & 1000 Rs Notes.

- I am working for a software company for the past 8 years and i file ITR every year. I have got some cash in hand (which i have earned only from salary), now

a) As per govt notice if i deposit more than 2.5 lacs in my bank account, i may be sent a notice from Income tax dept. If i deposit more than that amount (say 4 Lacs or 8 Lacs) is there a chance to get income tax notice?

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5 Replies

Neha Sharma (ca final) (234 Points)
Replied 13 November 2016

four or eight lacs... how could you keep such a big amount with yourself till date when there were banks. no u should not deposit but u can reach RBI to disclose the same after 31st December. I hope it will help

Dharmesh (Student) (1025 Points)
Replied 13 November 2016

Hitesh sir ,
kindly elaborate that what difference it makes if one deposits upto 2.5 lacs now and balance after 31 dec at or through RBI..

Krishna (Senior Engineer (QA)) (85 Points)
Replied 13 November 2016

Lets say, I have saved 5 lacs rupees in my bank locker for my sisters wedding and for any other emergencies. This amount has been saved only from my salary. If i deposit this amount, will they (IT) still question me ?

1 Like

Neha Sharma (ca final) (234 Points)
Replied 13 November 2016

one must go through rbi guidelines. if your return is being filed every year your CA or tax return preparer can answer you better.

CA Rashmi Gandhi (Chartered Accountant) (86285 Points)
Replied 13 November 2016

if u mention such cash in hand in your ITR then u can deposit this money in ur bank a/c but if u didnt shown this in ur itr tjen it ia better that u deposit only 2,50,000 in ur a/c & remaining amount u should deposit in ur mother, sister or father's a/c. First clear ur position in ur itr then take further decisions.

2 Like