Dishonor cheque exemption..

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jinesh (Querist)
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26 September 2012 Hi,
Dear Sir,

is there any exemption regarding dishonor of cheque? the Party who files the Income Tax return is having any exemption regarding dishonor of cheque.

Amol S Joglekar

Amol S Joglekar (Expert)
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26 September 2012 dishonour of cheques for TRADE DEBT is punishable under section 138. The rest are exempt.

jinesh

jinesh (Querist)
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27 September 2012 the rest are exempt that i am not getting if i start the Business and some of cheques dishonored due to insufficiency of funds and banks are not worried because i have good relationship with them.

How Practical the person takes the benefit of exemption.

how it is shown , where it is shown ?
is there any effect on TAx Audit?
Under which Sections in IT Act,1962 we can read it out pls explain Practically.

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Amol S Joglekar

Amol S Joglekar (Expert)
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28 September 2012 you need to give the details of dishonourment of cheques.... trade debts versus others. Trade debt cheques come under the perview of 138. Please clarify that cheques assued by you are dishonoured Or cheques deposited by you?