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Cash deposit in huge amount

Nisha Yadav (Accounts exe) (455 Points)

30 March 2013

Dear All gud evening,

I m working with a pvt ltd compayny. I have witdrwal 10 lac on 10 march'13 and now i want to depostit same amount date 2 April 13..

Now let me know is there any problem to deposit same amount after 20 days.

and second thing is any limit for cash in hand on 31st march?

Thanks to all

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20 Replies

CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)
Replied 30 March 2013

THERE WILL BE NO PROBLEM.

Nisha Yadav (Accounts exe) (455 Points)
Replied 30 March 2013

Thanks for reply.

is any limit for cash in hand in the end of financial year..

i have to show arounding 11 lac at the 31st march coz i will deposit 10 lac in bank.

CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)
Replied 30 March 2013

THERE IS NO ANY LIMIT FOR CASH IN HAND.

priya (student) (81 Points)
Replied 30 March 2013

dont worry it was in ur hands and is in ur hands. so no need to worry . don not accept or pay in cash more than 20000

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6871 Points)
Replied 30 March 2013

There is no problem to deposit huge cash amt in Bank

however you have mentioned your company's pan over deposit & further more AO can also ask source this transaction.

Nisha Yadav (Accounts exe) (455 Points)
Replied 30 March 2013

But we withdrawn that amount before 20 days.. Now want to deposit same amount.. Is any problem with this transaction?

CA D R P (Chartered Accountant) (313 Points)
Replied 30 March 2013

U have genuinly done the transaction in the past and want to do it genuinly in the future , so what is the problem in this???

Same amount can't be there!!!

Did u have any reason for withdrawal???

sumit kumar (Ca Final) (174 Points)
Replied 31 March 2013

Always try to do it in different amounts

For example : If 10,00,000 has been deposited

Prefer to withdraw it in instalments

may be 500000+300000+200000 or anything else !!!!!!

CA SURENDRA KUMAR RAKHECHA (Practising CA at Surat) (26258 Points)
Replied 01 April 2013

During Income Tax Scrutiny Assessment the AO may ask to explain why you withdrew the amount? In that case; you must have "proper explanations" to present your case.

Kamal Kumar (self employed) (62 Points)
Replied 01 April 2013

You are about to land in big trouble unless you have sounf explaination.One can withdraw/deposit cash any amount froom current a/c for ligimate reason.

Atul Deep Gupta (AGM) (30 Points)
Replied 01 April 2013

Withdrawing 10 lakh or more alerts the income tax authorities as banks have to report transactions over 10 lakh in one go. therefore you may be called upon by the ITO for clarification and u must be having genuine reasons for doing so. Otherwise it may be considered as Anti money laundering attempt. Be careful next time.

CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6871 Points)
Replied 01 April 2013

Originally posted by : Nisha Yadav
	But we withdrawn that amount before 20 days.. Now want to deposit same amount.. Is any problem with this transaction?

Please Remember this contra transaction contains two Financial Years.

And as experience, Bank will informed this transaction to RBI & Revenue Department, by upadting in NSDL server. Therefore you should have sufficient documentary evidence to support this transaction while responding to Assessing Officer