cash deposits in excess of 2.5 lacs
This query is : Resolved
11 November 2016
Dear Sirs,
Just out of curiosity want to ask this that suppose a labour class person who earns in cash an amt of 2lacs (all proofs available) and spends 1lac out of it..thus say for past 4 years he has 4 lacs with him , now as I've read on all posts he will be left stranded to the amount exceeding 2 or 2.5 lacs.. Now my question is why can't the arguments be that its an individual's wish whether he wants to keep cash with him or deposit in bank. Secondly since the income was below the taxable limit ITR wasn't filed. And lastly say the person never opened a bank account so there was no qurstion of depositing the same.
Or will all such explanations will be just quashed by the AO straightaway.
11 November 2016
All such explanations will be just quashed by the AO. All such persons opened bank ac.
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11 November 2016
Sir then this conversely means that it is mandatory to file ITR even if income is below tradable limit or it is mandatory to deposit cash in hand..?
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11 November 2016
It is mandatory to deposit excess cash in bank ac. No need to file ITR when the income is below taxable limits.
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11 November 2016
Thanks sir..one last question is there any law or rule stating to mandatorily deposit cash in hand. or its ultimately to the will and wish of AO that makes this an implied rule.
11 November 2016
The limit of 2.50 lacs is fixed by authorities at head quarters. The AO has to abide by the instructions from head quarters.
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