Cash deposits in Saving account More than 10 Lakhs

This query is : Resolved

Guest

Guest (Querist)

31 December 2022 Respected Sir
a stamp Vendor Who Deposited Cash in Saving account 13, 50,000 In F.Y.2021-22 He Received commission income 26759 after deducting TDS u/s 194H
he used stamp paper for affidavit and prepare Property Releted Documents He hardly earned 2lakhs in year for preparing property related documents

My question is if i show income u/s 44ad of rs. 5 lakhs rs and decalring 40 % income i.e. 2 lakhs and commission income 26759 then how ITO Relates declared income with Cash deposited Income of rs 13,50,000 .

is there any chance to get notice from Income tax Department For cash deposits.??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 December 2022 1. You cannot declare income u/s. 44AD as you are having commission income also.
2. You need to declare your total transactions including cash receipts, in ITR, under normal assessment.

Guest

Guest (Querist)

31 December 2022 Respected Sir,
The Commission income falls under the residuary head of income -IFOS
Client is not engaged any Commission agency or commission Business
client Primary Business is Preparing Property Documents and Affidavits and as its business can i show under 44ad and commission under IFOS

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 December 2022 Yes, that is an option available, but for cash deposited in bank, you have to declare total receipts in your business u/s. 44AD of the act.

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Guest

Guest (Querist)

31 December 2022 Respected Sir, Client Deposited Cash in Bank account for purchase a stamp , Customer Pay cash For Stamp and he deposited cash For Purchase a stamp and i declared stamp Earning Income as Commission
cash Deposited in his Bank account is not his Part of income, So how can declare Cash Receipt in total Receipts ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 December 2022 If he is stamp vendor, he earns commission income, so sec. 44AD will not be applicable.
If he is not stamp vendor, he doesn't earn commission, so the total receipts from customers will be his turnover for presumptive assessment.

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