Explanation for cash deposit

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2017 I am a retail trader of sanitary items. On 01.04.2016. I had a cash in hand of Rs.13,24,000/-(already reflected in my IT Return) During the period 09.11.2016 to 31.12.2016 I had deposited cash Rs.31.00 lac in my CC a/c, including Rs. 6,29,500/- deposited on 13.12.2016 (for which explanation has been sought from my by IT deptt.)
During the said period my cash sales was around Rs. 21.00 lac.

Opening balance on 01.04.216 = 13,24,000/-
Cash sales during 9.11 to 31.12.16 = 21,00,000/-
Less: Cash deposited during the
said period = 31,00,000/-

Personal drawings = 1,00,000/-

Hence, Cash in hand on 31.12.16 = 2,24,000/-

Please guide me as how should I fill the Explanation Sheet ?

Neither any cash withdrawals from banks nor any cash purchases by me.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

14 April 2017 Opening cash balance of Rs 13,24,000/- can be shown in the explanation sheet under relevant column. In addition mention by remark that the cash balance was on 01.4.2016 which was shown in ITR and cash book. Rs. 21 Lakhs out of cash sales can be shown as cash sales from unidentified persons. In remarks column mention your type of business and usual turnover over the years. If your case is an audited one please mention this also along with last audited turnover.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now