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Cash deposit in saving account

vinayak (accountant) (255 Points)

02 November 2019

I am salaried individual below taxable income. One of my friend deposited 90000 cash in my saving account in F.Y. 2019-20 (lumsum deposit in a single day )and i have purchased online software for him for the said amount, invoice is in my name. Will i have to show this cash deposit in my ITR return? Does i have to pay any tax on this transaction!

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11 Replies

Rijo John (audit manager) (445 Points)
Replied 02 November 2019

Cash deposits details are not required in ITR

You are not liable for pay tax on this transaction because this is not your income.

It's a cash deposit?

rama krishnan (12234 Points)
Replied 03 November 2019

As said by you, if it's received for purchase of software on behalf of your friend then there's no necessity to show it in your ITR

sabyasachi mukherjee (25973 Points)
Replied 03 November 2019

Are u running a business of software.
payment upto 2 lacs is allowed as per income tax act for each transaction.

Kapadia Pravin (17249 Points)
Replied 03 November 2019

@ Vinayak
You need not have to show this cash deposit in ITR

You do not have to pay any tax on this issue.

2 Like

subhagan sreerangam (7039 Points)
Replied 03 November 2019

This is not your income,it is a cash deposit.

sabyasachi mukherjee (25973 Points)
Replied 04 November 2019

@ vinayak
it's better to show it as income from profession.

vinayak (accountant) (255 Points)
Replied 04 November 2019

How can it be income as i have not sold anything.. I have purchased software from this cash on behalf of my friend. My friend does nto having access to online payment so i have purchased on behalf of him. Thats so simple.

sabyasachi mukherjee (25973 Points)
Replied 04 November 2019

Why your friend will give you money unless he has a pecuniary interest.
It has happened in many instances....
If your friend has the cash he has utilized your knowledge since he is not competent enough to decide.
what's wrong in it?

vinayak (accountant) (255 Points)
Replied 04 November 2019

MY FRIEND DOES NOT HAVE ONLINE NETBANKING FACILITY SO I PURCHASED ON BEHALF OF HIM. IS THERE ANYTHING WRONG IN IT!

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 04 November 2019

@ vinayak if you are able to prove the source and nature of receipt, there's no issue. Moreover these things are considered when your case is selected for scrutiny and when AO asks nature of receipts. So don't worry about it now