Cash deposit of 25 lacs in bank account
This query is : Resolved
30 March 2021
Dear Sir,
One of my client got a High value transaction sms notice for cash deposit of 25 lacs.
He used to withdraw cash from his saving account and then deposit some part of the money again into bank. This has resulted into total cash deposited to 25 lacs.
I want help what should I reply to Income tax regarding cash deposit compliance notice. He has not offered it as income while filing his return since the cash was withdrawn and deposited in bank from his salary income he earned.
Regards,
Divyesh Jain
One of my client got a High value transaction sms notice for cash deposit of 25 lacs.
He used to withdraw cash from his saving account and then deposit some part of the money again into bank. This has resulted into total cash deposited to 25 lacs.
I want help what should I reply to Income tax regarding cash deposit compliance notice. He has not offered it as income while filing his return since the cash was withdrawn and deposited in bank from his salary income he earned.
Regards,
Divyesh Jain
30 March 2021
Reply to the notice as cash was withdrawn and deposited in bank from his salary income he earned.
30 March 2021
Should I disagree with the query raised and write my reply or accept the query and reply
30 March 2021
Yes, disagree with the query and reply. If possible give reason for withdrawal and deposit.
30 March 2021
Ok, Thanks a lot Sir for sharing your experience
30 March 2021
You are welcome...........
01 April 2021
Dear Seetharaman Sir,
On income tax efiling site there is no option for writing down the reason for cash deposit. We either have to accept or deny.
Cash deposit is done as per bank statement. I think the query needs to be accepted and Balance sheet must be prepared for future reference if the assessing officer asks for detailed explanation. What do you suggest?
On income tax efiling site there is no option for writing down the reason for cash deposit. We either have to accept or deny.
Cash deposit is done as per bank statement. I think the query needs to be accepted and Balance sheet must be prepared for future reference if the assessing officer asks for detailed explanation. What do you suggest?
01 April 2021
“Attention xxxxxxxxxx (XXXXX5362X),The Income Tax Department has identified high value information which does not appear to be in line with the Income Tax Return filed for Assessment Year 2020-21 (relating to FY 2019-20). Please revise ITR / submit online response under e-Campaign tab on Compliance Portal (CP). Access CP by logging into the e-filing portal and clicking on 'Compliance Portal' link under 'My Account' or 'Compliance' tab - ITD."
The contents of the notice is like this.
In your case the high value transaction in the bank account is in line with the ITR filed by you and it doesn't require any revision.
So deny it.
When later any notice received for denial you have valid reasons that cash deposit is out of earlier withdrawal.
The contents of the notice is like this.
In your case the high value transaction in the bank account is in line with the ITR filed by you and it doesn't require any revision.
So deny it.
When later any notice received for denial you have valid reasons that cash deposit is out of earlier withdrawal.
01 April 2021
Ok, will do the same. Thanks
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