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CA Pratibha Sharma (ACA, ACS)     11 November 2016

Black money into white money

My mind has stuck with an opinion. Please make me correct if i m wrong.....

If a person withdrew 4-5 Lakhs from his bank Account 3-5 months ago and he has disclosed this bank account in his ITR. He spent some amount of money (not in gold not in property). Now he recieved some money eg. 3-4 Lakhs in cash and not disclosed that 3-4 lakhs. Now he goes to deposit his money e.g 2-2.5 or 3 lakhs in that bank account. i think he can show that 2-2.5 or 3 lakhs is that money which he had withdrawn 3-5 months ago..... 



 19 Replies

Saurabh806

Saurabh806 (Kanpur)     11 November 2016

Yes it can show. When he withdrawn earlier cash in hand as per book increased so it is a valid money. Also if has not disclosed in book then pass the entries back date as a contra entry.
CA VIRAL SANGHVI

CA VIRAL SANGHVI (Finance head)     11 November 2016

Hi,

yes he can do this,not any issue

RINESH DHANESHA

RINESH DHANESHA (Student CA IPC / IPCC)     11 November 2016

This is in regards with demonetization by our respected PM. I have a query that what if I have 8-9 lakh rs. Cash in hand which was collected by me from last 5-6 years but I never filed income tax return as I was earning only 1-1.5 lakh every year and which is below limit. And I have not maintained account for the same but I know closing position of every year. M I in default?
krishna

krishna (asm)     11 November 2016

dear I have query that how much time I can go to deposit 500 and 1000 rs note to my personal account
Udgam Koomar

Udgam Koomar (Tax Technologist)     11 November 2016

You should be able to explain the source with supporting docs, just saying will not help.

RINESH DHANESHA

RINESH DHANESHA (Student CA IPC / IPCC)     11 November 2016

as a small trader I Dont have many proofs to show my income for last 4-5 years but I had rough statement to prove that I was earning 1-1.5 lakh yearly. it was hard earn money. is it acceptable by it department?
CA Pratibha Sharma

CA Pratibha Sharma (ACA, ACS)     11 November 2016

Rinesh, if you have the proof of that 8-9 lakhs then you need not to worry.... 

1 Like
CA Pratibha Sharma

CA Pratibha Sharma (ACA, ACS)     11 November 2016

Rinesh, as u are a small trader, u must have bills of sales or purchase...

RINESH DHANESHA

RINESH DHANESHA (Student CA IPC / IPCC)     11 November 2016

but I don't have any bills from where I buy and as a small trader I Dont have issued any bills and have not maintained proper accounts. I have closing balance of every year. will IT department treat it as a valid proof?
CA Pratibha Sharma

CA Pratibha Sharma (ACA, ACS)     11 November 2016

Krishna, There will be an initial limit of Rs 10,000 per day and Rs 20,000 per week on withdrawal of money.

 

Deposit old notes of Rs 500 and 1000 in banks or post offices between November 10 and December 30, 2016

Those who are unable to, can exchange notes till March 31, 2017 at specified RBI offices after furnishing proper declaration.

Bijay Kumar Patni

Bijay Kumar Patni (Self Employed)     11 November 2016

how much i diposit in my joint bank account?

Mridanga Barman

Mridanga Barman (CA Final )     11 November 2016

 i think one can deposit the same. but since you will have more than one account, and if both of them are based on your PAN number, then mind you, the total deposits, from Nov 9 to Dec 30, against your PAN number might be reported to IT officials. Proceed on the basis of explanation of source of Income of the deposits, and if confused, deposit in the name of other family members having not crossed the specified limit.

Hope that was helpful to you. :)

CA Pratibha Sharma

CA Pratibha Sharma (ACA, ACS)     11 November 2016

There is no limit to Deposit but withdraw limit is 10000 per day and 20000 per week in your any kind of account. Till 30 dec you can deposit 2.5 lakhs in aggregate without any problem. But if you want to deposit more than 2.5 lakh then you must have the proof of the source of that money.

Dharmesh

Dharmesh (Student)     11 November 2016

suppose if a casual worker has and amount of 4 lacs in cash over a period of 4 years and all proofs of receipts are available then can he deposit the entire amount even though he has never filed ITR in the past since the income was below the taxable limit

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