LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Cash deposit in current account

Rohit Kumar (group 2) (97 Points)

18 November 2016

I have A wholseale of Medicine.

How much money I can deposit in business current account between 9 nov to 30 dec.

If answer is 12.5 lakh.

Can I deposit it in 500-1000 notes?

From Nov 9 to Today I have deposited 4 lakhs in my current account.

On average i used deposit 1.4-2 lakh per day in my Current account.

Reply
Follow
Share

6 Replies

Dharmesh (Student) (1025 Points)
Replied 18 November 2016

Are wholesalers also allowed to take the old notes as per the gov notification or announcement ?

Rahul Shah (Assistant Chartered Accountant) (196 Points)
Replied 19 November 2016

You can Deposit upto 12.5 lakh in your account .upto that limit Bank Will Not report to Income tax . but above Rs 12.5 lakh Bank will Report to the Income tax Department .

Dharmesh (Student) (1025 Points)
Replied 19 November 2016

According to me the exemption is for medical stores / retailers to accept old notes of 500 and 1000 from consumers till the specified date. However such an exemption had not been extended to wholesalers.. There is a clarification sought by the association on this regards..
So first kindly check for the exemption and then only further decide whether and from when to accept or deposit the same.

CA Gopal Rathi (CA) (191 Points)
Replied 19 November 2016

you should deposite only single time and according to your books.only amount permitted by books can be deposited to avoid further scrutiny.

Quantum of amount is irrelevent if books permit

1 Like

Dimple (Student) (364 Points)
Replied 28 November 2016

what to do if i had cash of Rs 800000 on 8th nov. I want to deposit these old notes in my current account. Should i deposit at one time or in parts??? I feel unsecured going out and depositing it at one time with this large amount, and if i deposit it in parts then, the question will be I am doing business on regular basis means how can i deposit 8th nov cash till 30 dec??????

plz reply

Thanks

Tejas Adhav (student) (33 Points)
Replied 28 November 2016

simply you can prepare two balance sheets showing a closing cash balance of rs 800000 on 8th and opening balance as on 9 and depositing it in bank any time