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Cash deposit in current account

Tax queries 719 views 4 replies

Hi,

 

One of my client had withdrawn 60 lakhs from current account last year. Can we now deposit the same at one stretch in the bank. ?

Hope there wont be any notices as he had withdrawn this from his current account only

Replies (4)

Check cash balance with accounts As of 08.11.2016, before depositing last year's withdrawals.

Notice bound to come, prepare for justification.

The Central Board of Direct Taxes (CBDT) has  amended rules in the Income Tax Act and asked banks to furnish a statement of financial transaction in one or more current accounts of a person for cash deposits of Rs 12.5 lakh and above between November 9 and December 30. ...  Above on the limit required suitable source of income.

As per balance sheet should be checked last year cash closing balance. 

As per B/S as on March 2016, Cash balance is 60 lakhs. I hope there is no risk involved. If Notice comes there is valid justification of cash available in hand. 


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