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Is income tax eligible

Tax queries 270 views 11 replies

bhopen

MBA

104 Points Posted on 30 March 2017

Hello sir, I am running a small business of Money transfer. Money is recieved by cash from the customers and amount is transceted through net banking from my current account. The received cash is again deposited to my current account. It goes on daily which amounted upto 1 lakh daily. My question is should I pay income tax and if yes, then under what condition?

Replies (11)

Studentsca

CA Practice

3577 Points Posted on 30 March 2017

Income tax is payable if your income exceeds basic exemption limit of Rs. 2.50 Lacs per annum. The cash which gets deposited has got no relevance as such.

bhopen

MBA

104 Points Posted on 30 March 2017

You mean I don't need to pay income tax. I heard Cash deposits or withdrawals aggregating to Rs 50 lakh or more in a financial year in one or more Current Account of a person will have to be reported by the bank to the I-T authorities. Is it true?

Studentsca

CA Practice

3577 Points Posted on 30 March 2017

It may be reported by the bank in accordance with the guidelines issued . If you receive any from Income Tax Department then reply to them the nature of your business.

bhopen

MBA

104 Points Posted on 30 March 2017

HOW TO REPLY PLEASE GUIDE ME..BECAUSE MY AGGREGATE TRANSECTION MAY CROSS 50 LAKHS IN A YEAR.

Studentsca

CA Practice

3577 Points Posted on 30 March 2017

Have you received any notice from the department??

bhopen

MBA

104 Points Posted on 30 March 2017

NOT RECEIVED YET......................................................................

Studentsca

CA Practice

3577 Points Posted on 30 March 2017

So what will you reply to?? Don't worry reply only when the notice comes. Just make sure you file your Income Tax Return if your Income exceeds Rs. 2.50 Lacs per annum.

bhopen

MBA

104 Points Posted on 30 March 2017

Thank you very much for clearing my doubts. you mean such transections will not be counted as income?

Studentsca

CA Practice

3577 Points Posted on 30 March 2017

You recieve money from clients for transfer. You then transfer that money as per the instructions of your clients. As a money transferer your income is only the commission you get from transfer. Cash deposits will not be counted as your income.