Deposit of cash due to demonitization
This query is : Resolved
21 November 2016
Dear friends,
The hot topic these days is "Tax & Penalty on Cash deposited into Banks due to Demonitization". I have gone through several articles on this topic. The crux is that Sec 270A is applicable on this point which talks of penalty of 50% to 200% on "Under Reported" & "Mis-reported Income" respectively. There are views in case one deposits the cash , shows the same in his current year's (AY 2017-18) & pays applicable tax thereon, will not face much problem.
There are other reports that Income Tax Department has already started sending notices to such persons who have deposited cash in excess of the prescribed limits i.e. Rs 2.50 Lacs aggregating in one or more saving bank accounts. Some have views that IT Department may call for the details from assessees within Feb 2017 (when the AIR period expires on 31-0102017). Normal procedure is that one can file ITR upto July 2017 & pay applicable taxes by that date & thereafter only IT department should ask for details / assess under reporting or mis reporting cases.
Please share your valuable views on the above.
The hot topic these days is "Tax & Penalty on Cash deposited into Banks due to Demonitization". I have gone through several articles on this topic. The crux is that Sec 270A is applicable on this point which talks of penalty of 50% to 200% on "Under Reported" & "Mis-reported Income" respectively. There are views in case one deposits the cash , shows the same in his current year's (AY 2017-18) & pays applicable tax thereon, will not face much problem.
There are other reports that Income Tax Department has already started sending notices to such persons who have deposited cash in excess of the prescribed limits i.e. Rs 2.50 Lacs aggregating in one or more saving bank accounts. Some have views that IT Department may call for the details from assessees within Feb 2017 (when the AIR period expires on 31-0102017). Normal procedure is that one can file ITR upto July 2017 & pay applicable taxes by that date & thereafter only IT department should ask for details / assess under reporting or mis reporting cases.
Please share your valuable views on the above.
21 November 2016
You are obsolutely right. But those who are not able to prove the source in case of heavy deposit of old notes will face problem.
21 November 2016
Thank you sir, but the question is whether IT Department can assess the Income & Impose the penalty without waiting for the last date for filing of ITR for FY 2016-17 ? most of the query by people are roaming around this point.
21 November 2016
Penalty will be levied only after the last date for filing the return as per the provisions of section 270A.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- GST ON EXPORT COMMISSION
- Should I report my US salary for January, February, March in Schedule FA?
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- Confusion around Form 26QB fields
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
