Cash transaction limit of rs 2 lacs
RAKESH BHATT (9 Points)
24 March 2017
what are the criteria for depositing cash in savings/current a/c and loan a/c w.e.f 01/04/2017
RAKESH BHATT (9 Points)
24 March 2017
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 24 March 2017
Hi,
Loan can not be paid in cash in any circumstances and dont deposit more than Rs.50,000 in a single day in single account.
RAKESH BHATT
(9 Points)
Replied 24 March 2017
But I am confused that whether we can deposit any amount below Rs 2 lacs not more than Rs 49,90,000 in current a/c and Rs 49000 and not more than 9,90,000 in savings a/c in a year (inclusive of all a/cs by individual) But in paper they are saying that Income tax department will charge penalty and will cross examine books. But I want to say that any business man is Distributor and supplying goods to small shop keepers and daily collect cash from them and deposit in their current a/c and pay to the company and it not possible to maintain the a/cs of 300 to 400 shopkeepers we maintain Agents from whom the goods are supplied to them what will be the seneraio then.
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 25 March 2017
See If you are a retailer and most of the sales are made in the mode of cash than you have to prepare the invoice containing the name of the party address and you have to deposit the cash in bank and maintain the record in such a way that the cash amount and sales bill number will tally so that there is no any proble persists.
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