Urgent
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 August 2013
Dear Sir,
There is a person who runs Maths coaching classes, and his students pay him monthly tution fee in cash.
He should deposit the sum collected in bank every week
or
Once in a month
or
he is free to keep all money as cash in hand.
From the income tax point of view, which option will be better in the above case.
Please advise me.
There is a person who runs Maths coaching classes, and his students pay him monthly tution fee in cash.
He should deposit the sum collected in bank every week
or
Once in a month
or
he is free to keep all money as cash in hand.
From the income tax point of view, which option will be better in the above case.
Please advise me.
CA PARAS BAFNA
(Expert)
19 August 2013
The best option can be selected by taking into consideration some other factors also.
If the students can give by cheque- we may not consider any other option. But it may not be possible. In such a situation he should deposit the cash received as per his convenience. He may provide a deposit slip the students to the student, so that amount can directly be deposited to his account.
. From Income Tax point of view, though there is no such compulsion, still, the simplest idea may save the teacher from many accounting difficulties.
.
He may withdraw cash from his ATM card and make expenses payments by a/c payee cheques.
.
If the students can give by cheque- we may not consider any other option. But it may not be possible. In such a situation he should deposit the cash received as per his convenience. He may provide a deposit slip the students to the student, so that amount can directly be deposited to his account.
. From Income Tax point of view, though there is no such compulsion, still, the simplest idea may save the teacher from many accounting difficulties.
.
He may withdraw cash from his ATM card and make expenses payments by a/c payee cheques.
.
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