Cash deposits in firm account

This discussion explores whether cash deposits made by partners into a partnership firm's current account can be considered as capital contributions. It addresses concerns about large daily cash deposits, specifically over Rs. 2 lacs and Rs. 14 lacs, and their potential impact on tax audit reports. The consensus is that if cash is deposited directly into the firm's bank account by the partner, it is accepted by the bank on behalf of the firm. This scenario is generally not considered a contravention of Section 269ST due to bank exemptions, and therefore, should not lead to a tax audit qualification.