07 December 2017
I have a client who has declared a cash balance of Rs 19 lakhs in ITR-4S for AY 2016-17
but the actual cash balance available on hand is only Rs 2,35,400 on that date- 31.3.2016
such huge cash balance is only becoz of accumulation of balances in balancesheet starting from FY 2007-08.
Now he wants to show actual cash balance of Rs 2 lakhs odd after giving effect to drawings and his profit ( 8 % of gross reciepts) in ITR- 4S for AY 2017-18.
Can he do so ? will IT Department scrutinise the cash balance
will the IT Department ask why the cash balance of Rs 19,00,000 is not deposited during the demonitisation period.
if I show the amount of Rs 19,00,00 cash balance for AY 2017-18 will the IT Department penalise for having such huge amount of old currency as an offence- but the fact is that the he does not have cash on hand of Rs 19,00,000 as declared in the return. he has only 2 lakhs odd.
how to deal with this issue anybody please guide me.
Thanks in Advance
Your reply would be appreciated.
CAclubindia
