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Can i deposit the cash withdrawn after 7 months?

Gupta (DGM) (45 Points)

09 October 2014

I had withdrawn 2 cash amounts of Rs 9.5 lac and Rs 8.5 lac in March, 2014. This amount remained unutilized with me. Now iI want to deposit these cash amounts back in my Saving bank account, but I am afraid that Income Tax deptt. might send me notice to explain the source of these deposited amounts. Experts are requested to Kindly advise some way out.

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3 Replies

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 09 October 2014

If your's business is proprietorship you can show amounts withdrawn as drawings in the month of March 2014. And you can show as addtional capital (capital introduced) once you redeposit the same.There will not be any problem .But you should make the entry in cash book.

Mihir (Wealth Manager) (5293 Points)
Replied 10 October 2014

It will depend on the kind of transactions you have had in the past in your saving account. You may smurf by depositing smaller amount of cash in the saving account in regular intervals to avoid detection.