Cash deposits more then 2 lakh

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This query is : Resolved

RINESH DHANESHA (Querist)

11 November 2016 This is in regards with demonetization by our respected PM. I have a query that what if I have 8-9 lakh rs. Cash in hand which was collected by me from last 5-6 years but I never filed income tax return as I was earning only 1-1.5 lakh every year and which is below limit. And I have not maintained account for the same but I know closing position of every year. M I in default?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 November 2016 IT dept will not accept your views(as your earnings is only 1 to 1.5 lacs and after your expenses what you will save). Your deposit of cash will be treated as your current year income and tax payable on it.

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RINESH DHANESHA

RINESH DHANESHA (Querist)

11 November 2016 as a small trader I Dont have many proofs to show my income for last 4-5 years but I had rough statement to prove that I was earning 1-1.5 lakh yearly. it was hard earn money. is it acceptable by it department? how they can treat that this amount is my current years income as it was my hard earn money for last many years. thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 November 2016 Any how try your argument with the dept.

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Amol S Joglekar

Amol S Joglekar (Expert)

11 November 2016 see, if income can be computed as you are trying to argue.
But please note, it can be calculated from expenditure side as well........(How?)
It can also be computed from the WEALTH side as well...
You need to justify your claim of cash in hand, without having any wealth like LIC, FD, Plot, Gold etc. etc.
Please tell me your views on this

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