Response to cash transacrion 2016

You may choose 

• Cash received from identifiable persons (with PAN)            option and in details give explaination as reimbursement from clients.

SIR

MY CLIENT DEPOSITE 850000 IN CURRENT ACCOUNT. HIS  BUISNESS IS SEED AND PESTISIDES. 

Now  How it Can be responded
 

Prepare cash flow statement as of 08/11/2016.

Segregate different sources of cash receipts based on cash sales with identified or non-identified persons with their amount, loans/any other kind receipts, cash out of savings and earnings, etc.  and file details accordingly.

As per bank challans even differentiate the amount as per old demonetized notes and new currency, if any.

Be sure this may not be final, so do home work properly with accurate facts.
 

My client have cash balance of 15 lac in last year audited balance sheet and he deposited same in bank account. So how we can resond to Income tax

@ Pravin Mahadik: Well, its good that the cash balance is reflecting in previous years BS, but cash balance in the books of accounts as of 08.11.2016, would be more important. If its nearly same, you can select first option : 

Thank you.