Income tax notice reply

I am a distributor of Paytm payments bank which deals with money trasfer business. Now we have many retailers under us which deals with us. We provide retailers with money (digital form) to perform money transfer from their shops and the retails collect cash from the person who came to do money transfer. Now we collect this cash from retailer and deposit in our current account and then send it to our paytm distributor portal and the process moves as explained above. Basically for example we have invested 10 lakhs and the same money is rotated every day. Due to deposit of huge amount at our current accout, income tax department has sent 131(1) notice. Now how to answer that this is not by income but the commission that we receive by doing money transfer is our income? I file gst returns for the commission I receive.

Replies (3)
Quick Summary
This discussion addresses an income tax notice received by a Paytm payments bank distributor. The user needs help clarifying that their business involves rotating capital, and their actual income is derived from commissions on money transfers, not the deposited amounts. They currently file GST returns on this commission and are seeking guidance on how to respond to the tax department's notice.

Pls upload the details or else inbox me . I will get back to you.
Better to consult a CA
Kindly inbox the details

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details