Is it necessary to keep earned income in bank ?

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2015 Dear experts , wish to know that , i am regular tax payer , i run a coaching . In a year i earn 2 to 3 lacs . SOME % of earned money i deposit in a bank so that i gain some interest on it , rest of the money for my personal use . I am filing ITR since 2011 .

My year wise return detail ( approx )
In 2011 i filed ITR = 1 lakh 80 thousend in which i spend 50 thousend , deposited in bank 50 thousend , 80 thousend in my home
In 2012 i filed ITR = 2 lakhs in which i spend 70 thousend , deposited in bank 80 thousend , rest 50 thousend in my home
In 2013 i filed ITR = 2.20 lakhs in which i spend 60 thousend , deposited in bank 80 thousend , rest 80 thousend in my home
In 2014 i filed ITR = 2.50 lakhs in which i spend 90 thousend , deposited in bank 90 thousend , rest 70 thousend in my home Now i want to deposit my all money in bank that i have kept in my home 80+50+80+70= 2.80 lakhs ( to save from theif ) . Can i deposit this money in my bank account or Will ITO consider this amount as my income of current financial year and It will club with my current financial year income . Guide me please . What should i do now ?

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)

23 January 2015 You can do that as per the information given by you.Such savings money when deposited into Bank account will not form income of the year of deposit.Only thing you have to establish the sources of such cash deposit, if at all ITO asks.As explained by you the cash savings are reasonable.Regarding the expenses you mentioned, whether 50,000( I year),700000( ii year) and so on are reasonable or NOT depends on the living style,Family size, Area where you live etc.

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