NOTICE RECEIVED FOR CASH DEPOSITED INTO BANK SAVINGS ACCOUNT

Save Share

This query is : Resolved

Quick Summary

A colleague has received an Income Tax notice regarding a Rs. 10 lakh cash deposit into their savings account during FY 20-21. As a private employee who doesn't fall into a tax bracket, they are unsure how to respond. While proving the source of funds can be challenging, exploring business options like Section 44AE might be considered, though Section 68 could be invoked. Seeking advice from a tax consultant is recommended for careful handling of the situation.

VENKATESWARA REDDY K

VENKATESWARA REDDY K (Querist)
Follow

07 April 2021 ONE OF MY COLLEAGUE NOTICE RECEIVED FROM INCOME TAX DEPARTMENT FOR CASH Rs. 10 LAKHS DURING FY 20-21 DEPOSITED INTO BANK SAVINGS ACCOUNT. WHAT REPLY HE SHOULD GIVE FOR THIS NOTICE. HE IS A PRIVATE EMPLOYEE. HE WILL NOT COME INTO TAX BRACKET. PLEASE HELPME.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 April 2021 What is the source of cash deposit. Based on the source only reply can be given.

Message likes : 1 times

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
Follow

08 April 2021 CA R Seetharaman ji, it is difficult to prove the source in most of the cases. Businesses within the scope of 44AE may be explored. But there is a chance of invoking the provisions of section 68 (IT Act) etc. It is better to meet a tax consultant to handle it carefully.

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