How much old currency notes can be deposited in current ac

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varad mudliyar

proprietor

68 Points Joined December 2011

Hi All Good Evening. Wishing You Nice weekend.

There is so much confusion about old currency notes exchange .

I would like to know how much amount can be deposited in current account without attracting IT dept. wrath?

Any business person big or small must be having 4-5 lacs in cash.

I have been told that limit is Rs.12.5 Lacs. So If I deposite Rs. 5 Lacs ( which is less than 50% limit) in current account and nothing in savings , what will be consequences ? Will Dept. still ask me from where this monery has come ? Or they will ignore it till 12.5 lacs

Practcally speaking if you are leaving in cities , rs. 5 lacs is nothing. I have kept aside this towards medical emergency of my parents. This is years of savings in cash. I am self employed having a small home based business. I have filled returns for last 10 years and there is no any issue.

Pls. let me know what should I do.

Thank you

Regards

varad mudliyar

Replies (3)

Puja Prasad

Semi-Qualified CA & Student

336 Points Joined January 2016

The Central Board of Direct Taxes (CBDT) has amended rules in the Income Tax Act and asked banks to furnish a statement of financial transaction in one or more current accounts of a person for cash deposits of Rs 12.5 lakh and above between November 9 and December 30.
Sources in Income Tax department indicated that notices would be issued to persons whose cash deposits comes under the annual information report or statement of financial transaction and ask to explain their source of income.
So you can deposit Rs. 5 Lacs in your current account of your business provided such money is shown in your books of accounts as cash-in-hand.