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Cash deposit notice in saving bank

vijay yadav (ACCOUNTANT) (29 Points)

01 March 2017

I have deposited cash 10 lakh during note banned and this amount was withdrawn by me from the bank before 1 month for purchasing land but due to some reason I could not buy. so the cash was on hand and I had to deposit the same in bank.. what should I reply to IT department ???

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8 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161231 Points)
Replied 01 March 2017

a) Cash withdrawn out of bank account

Studentsca (CA Practice ) (3577 Points)
Replied 01 March 2017

Be prepared to explain the source of original cash deposit.

kiran (Student) (98 Points)
Replied 01 March 2017

Dear Sir,

If you have proper evidence to produce relating to the 10 Lakhs earned and submitted your PAN details to the bank (i.e., your bank account has been linked with PAN) and you have paid proper tax on such income then there will be no problem.

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vijay yadav (ACCOUNTANT) (29 Points)
Replied 01 March 2017

Income was earned from agriculture income and I have all proof of agriculture income .....Like ledger's of buyer and receipts .. my agriculture income is almost 8 to 9 lac per year

Studentsca (CA Practice ) (3577 Points)
Replied 01 March 2017

Agricultural income is exempt in India. since you have all the proof justifying agricultural income, you should file your income tax return and claim exemption for the same.
This is help you justifying for case in future if notice for questioning is issued to you.

K.HARI (CHARTERED ACCOUNTANT) (53 Points)
Replied 02 March 2017

There is a segment to report remittance out of withdrawal. Use that segment to respond to the remittance during the demonetisation period.

Otherwise, like some one said before, make sure you have enough sources to explain the holding and possibly file an Income Tax Return for AY 2015-16 ( year ended 31.3.15 ) before it gets time-barred & AY 2016-17 (year ended 31.3.16 ) disclosing the nature of income you have (including agricultural income)

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