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Deposits in current account

SAGAR BAJPAI (TAX CONSULTANT) (189 Points)

20 September 2017

I have a business of Ciggrates and pan masala and I have a turnover of more than 1 crore. I wants to show all my turnover through my current account(deposit and withdrawl). Please provide information regarding the limits of current account and cash transaction limit.
NOTE-90% OF TRANSACTIONS IN THIS BUSINESS ARE IN CASH

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160835 Points)
Replied 20 September 2017

You can depost cash to your current account, provided all your invoices are below 2 lakhs limit, with gst + cess paid.

But you cannot make payment by cash. You must pay your creditors by any banking channel.

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SAGAR BAJPAI (TAX CONSULTANT) (189 Points)
Replied 20 September 2017

Respected sir, If i do transaction of more than 50 lakhs in an year in my current account, will it attract any provision or notice of income tax

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160835 Points)
Replied 20 September 2017

Bank has to report such cash transactions to department. Department verifies such data with your return filed and nature of your business. If any doubt or phishy matter found, triggers notice.