Regarding itr 4s

1. Yes.

2. Yes

3. No problem (hope not deposited in demonetized period) 

DEAR SIR THANKS YOU VERY MUCH 

NOT HE NOT DEPOSITED IT IN DURING DEMONITIZATION PERIOD

"IS THERE ANY ACTION ON HIS SAVING AFTER RETURN FILING. AS HIS BANK DETAILS GONE TO IT DEPARTMENT." 

On what basis the account transaction reported to IT department?

LIKE HE HAS NEVER FILED RETURN EARLIER OR AND THE QUESTION COMING IN COMMAN MAN'S MIND THAT WILL INCOME TAX ASK WHERE THIS MONEY COMES FROM??? AS HIS SAVING IS 4 LACS BEFORE THE RETURN FILING I MEAN ABOVE FROM TAXABLE LIMIT OF 2.5 LACS LIKE FEAR OF COMMON MAN 

DEAR SIR 

PLEASE ALSO TELL ON WHAT BASIS TRANSACTION REPORTED TO IT DEPARTMENT??

AND IN WHICH CASE IT DEPARTMENT CAN ASK US WHERE THIS MONEY COMES FROM??? 

AND ONE MORE THING IF A PERSON SAVES 10-20 LAKHS FROM HIS EXEMPTED TAXABLE INCOME BELOW RS 250000 OR WHATEVER RATE IN EARLIER SLABS AND HE NEVER FILED IT RETURN EARLIER WILL IT DEPARTMENT ASKED WHERE THIS MONEY COMES FROM?? ASSUME HE SAVED IT IN 10 YEARS 

Originally posted by : Deep Garg
	LIKE HE HAS NEVER FILED RETURN EARLIER OR AND THE QUESTION COMING IN COMMAN MAN'S MIND THAT WILL INCOME TAX ASK WHERE THIS MONEY COMES FROM??? AS HIS SAVING IS 4 LACS BEFORE THE RETURN FILING I MEAN ABOVE FROM TAXABLE LIMIT OF 2.5 LACS LIKE FEAR OF COMMON MAN

Why should any one fear, if he has not done anything wrong?

There are different criteria, based on which the department is very active to unearth unaccounted money. If your client has not deposited any cash (above 2.50 lakhs, during the 50 days), rest assure, he is not in current enquiry list of the department.

For the said 4 lakhs balance in the account, you can explain it as the savings during last 3/4 years, based on cash flow drawn from income, be it below taxable limit.

THANKS SIR FOR YOUR VALUABLE ADVISE

DEAR SIR PLEASE ALSO TELL WHAT IS CASH FLOW?? IS IT IS WHAT WE DEPOSITED IN OUR ACOUNT INCLUDING CASH AND CHEQUE DEPOSIT. YOU MEAN TO SAY THAT WE SHOULD DEPOSIT BELOW TAXABLE LIMIT IN A FINANCIAL YEAR IF WE HAVE NOT TAXABLE INCOME  

HOW IT IS DRAWN FROM INCOME???

It is the flow of income & expenditures of the (tailoring) business but only of cash part. As your client doesn't transact by bank the same is Funds flow statement. For complete working you may refer: https://www.accountingcoach.com/cash-flow-statement/explanation or 2. https://www.mca.gov.in/Ministry/notification/pdf/AS_3.pdf

SIR HE IS ONLY HOLDING SAVING ACCOUNT IN THIS WHAT IS HIS CASH FLOW???HE DID ALL HIS BUSINESS ALMOST IN CASH. AND ALSO NOT DOING HIS EXPANSSES BY CHEQUE. 

Yes, that is why I said prepare cash flow statement (summary) for last 3/4 years, and as such balance amount (savings of that particular year) either deposited in savings account or remain as cash at hand. Simply to say, if out of 2.5 lakhs of income from business, amount expended for personal expenditure of about 1.7 lakhs to 2 lakhs, some amount remains as balance or not? ............

SIR 

DID YOU MEAN CASH DEPOSITED IN ACCOUNT IN A FINANCIAL YEAR SHOULD NOT BE GRATER THAN TAX EXEMPTION LIMIT  

MEANS IF WE WANT TO FILE NILL TAX RETURN OUR DEPOSIT SHOULD NOT BE GREATER THAN 2.5 LAKHS IN A YEAR IF EXEMPTION LIMIT IS 2.5 LAKHS IN THAT YEAR 

Yes, unless you have cash balance of earlier year (opening balance)