Cash Balance in ITR-4 ( Presumptive Taxation ) AY 2017-18

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Talanki Supraj (Querist)

07 December 2017 I have a client who has declared a cash balance of Rs 19 lakhs in ITR-4S for AY 2016-17 but the actual cash balance available on hand is only Rs 2,35,400 on that date- 31.3.2016 such huge cash balance is only becoz of accumulation of balances in balancesheet starting from FY 2007-08. Now he wants to show actual cash balance of Rs 2 lakhs odd after giving effect to drawings and his profit ( 8 % of gross reciepts) in ITR- 4S for AY 2017-18. Can he do so ? will IT Department scrutinise the cash balance will the IT Department ask why the cash balance of Rs 19,00,000 is not deposited during the demonitisation period. if I show the amount of Rs 19,00,00 cash balance for AY 2017-18 will the IT Department penalise for having such huge amount of old currency as an offence- but the fact is that the he does not have cash on hand of Rs 19,00,000 as declared in the return. he has only 2 lakhs odd. how to deal with this issue anybody please guide me. Thanks in Advance Your reply would be appreciated.

Talanki Supraj

Talanki Supraj (Querist)

17 December 2017 It has been more than a week since I had posted my query Not even one reply Hell with this app no use unhappy to use this app