SEO Sai Gr. Hosp.
208925 Points
Joined July 2016
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.