Clarification for penalty tax on deposit of old rs 500 notes
This query is : Resolved
11 November 2016
Dear Sir / Madam,
I am a individual resident and tax payer of India. I file my returns regularly every year since 1995 and all my assessments have been completed uptill AY 2016-17 and refund paid to me.
I am a retired teacher and living on my savings income which is total slightly less than 5 Lakhs. Since 2013 I have been filing IT returns online to get me TDS refund. And my TDS refund has been credited to my bank account.
My query is in Feb 2014 I had withdrawn about Rs 1.4 lakhs cash to be paid to redeveloper of my mom’s building, she is very senior citizen 88 years old. But money could not be paid to redeveloper due to some issues with him and BMC authority. Hence my mom’s building redevelopment is pending.
The Rs 1.4 cash lakh withdrawls were from my own bank savings account by using cheque book issued by bank to me. My passbooks shows clearly all of these withdrawls with details. And I have listed these bank accounts in my ITR2A online form for AY 2015-16 onwards as required by IT authority.
All this cash is still with me and is in Rs 500 denomination notes which are no longer legal tender from 9th Nov 2016.
Can I deposit this Rs 1.4 lakhs as Rs 500 notes back into my bank savings accounts? Will it attract penalty and tax? Other wise this money becomes waste paper after 30 Dec 2016 and big loss to me.
Kindly guide me what is best way to proceed, since there is not of information which I do not clearly understand.
Regards
Sherryl
I am a individual resident and tax payer of India. I file my returns regularly every year since 1995 and all my assessments have been completed uptill AY 2016-17 and refund paid to me.
I am a retired teacher and living on my savings income which is total slightly less than 5 Lakhs. Since 2013 I have been filing IT returns online to get me TDS refund. And my TDS refund has been credited to my bank account.
My query is in Feb 2014 I had withdrawn about Rs 1.4 lakhs cash to be paid to redeveloper of my mom’s building, she is very senior citizen 88 years old. But money could not be paid to redeveloper due to some issues with him and BMC authority. Hence my mom’s building redevelopment is pending.
The Rs 1.4 cash lakh withdrawls were from my own bank savings account by using cheque book issued by bank to me. My passbooks shows clearly all of these withdrawls with details. And I have listed these bank accounts in my ITR2A online form for AY 2015-16 onwards as required by IT authority.
All this cash is still with me and is in Rs 500 denomination notes which are no longer legal tender from 9th Nov 2016.
Can I deposit this Rs 1.4 lakhs as Rs 500 notes back into my bank savings accounts? Will it attract penalty and tax? Other wise this money becomes waste paper after 30 Dec 2016 and big loss to me.
Kindly guide me what is best way to proceed, since there is not of information which I do not clearly understand.
Regards
Sherryl
11 November 2016
Don't worry deposit the amount in your bank ac you have valid proof for the source of money. No body will question your deposit. No need for payment of any tax or penalty.
13 November 2016
Seetharaman Sir,
Thanks for your clarification. It really helps me. I forget to ask one more query, after I deposit this cash in my savings account, do I need to mention this amount in my AY 2017-18 ITR2A form when I file the IT returns in Jun/July 2017. What is correct procedure? Thanks for your kind help
Sherryl
Thanks for your clarification. It really helps me. I forget to ask one more query, after I deposit this cash in my savings account, do I need to mention this amount in my AY 2017-18 ITR2A form when I file the IT returns in Jun/July 2017. What is correct procedure? Thanks for your kind help
Sherryl
13 November 2016
No need to mention in the IT return. IT dept may or may not ask in future about cash deposits in the IT return. But you need not worry.
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