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Treatment on sale of Old currency notes

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NAKUL (Querist)
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29 June 2011 I sold a pack of Rs.5/- old notes for Rs.50,000/-...What will be its tax treatment.The Income is taxable in which head and how...please suggest..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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29 June 2011 In my view, You can't sale currency in this way. And if you have done so, do not tell anybody. Except tax treatment, there are different treatments under other law also.
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If you can sell Rs 500/- in Rs 50000/- it is up to your wish, either to show the income or not. However taxable limit is
180000/- for the AY 2012-13. So You need not to pay any tax.
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I am having respect for the honest taxpayer.If you are engaged in this type of business only, it will be your business income. Otherwise take the income under the head IFOS.

NAKUL

NAKUL (Querist)
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09 July 2011 No this is not illegal...Old 5 Rs. notes are accepted at high prices...Even the government is buying it back...I am not in this Business...

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