Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Cash deposit in demonetization period

vaibhav (ca comlete) (34 Points)

28 March 2017

i deposited all money which i received from customer in daily basis in my current account so how can i reply in compliance ? mean it cover under which head like 1) Cash out of earlier income or savings or any other and what i need to mention in remark ?

Reply
Follow
Share

3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193906 Points)
Replied 29 March 2017

Que: If the cash is out of cash sales of business, how do I assign it under the various categories?

Ans: If the cash is out of cash sales of business, the cash may be assigned under various categories in the following sequence:
b) Cash received from identifiable persons (with PAN)
c) Cash received from identifiable persons (without PAN)
d) Cash received from un-identifiable persons
e) Cash out of earlier income or savings - closing cash balance as on 31st March 2016
The taxpayer is advised to provide the details of identifiable person (with PAN) to reduce the chances of the case being selected for verification. Adopting other sequence may result in case being selected for verification based on risk criteria

Courtesy: Cash Transaction 2016 (Frequently Asked Questions) Income Tax site.

Upgrade to CAclubindia Pro. Subscribe Now!

vaibhav (ca comlete) (34 Points)
Replied 29 March 2017

but sir a client has amul milk agency and he sell to direct customer on cash like 1 ltr 500 ml etc so it's not posainle pan card information so how can i reply?