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.
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Money transfer business cash deposit
YOU NEED TO RECONCILE YOUR BOOKS OF ACCOUNTS WITH BANK STATEMENTS ALONG WITH THAT OF PAYTM WITH COMMISSION RECEIVED, AND PRODUCE THE SAME TO THE ASSESSING AUTHORITY. BETTER TO HIRE A LOCAL PROFESSIONAL WHO MAY BE WELL VERSED IN SUCH MATTERS.
Sir can I talk to you to resolve some doubts
As you have to follow certain legalities to convince your ITO for the type of business you are doing, better contact some local professional. He will be able to resolve your doubts in person.
As the notice came from shillong which is very far away from my place. Do I have to go there or submit documents at local ITO?
Also can I submit it online as in my IT portal there is a uploading option available
Yes, online response can be uploaded.
Hi,
Can you please let me know how this issue has been resolved?
I'm doing money transfer business, depositing cash in my current account and transfer IMPS for customers and charge 1% as comission.
What are the booked to be maintained for this business?
Is there any license for doing money transfer business?
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