Income tax notice for cash transaction in savingbank account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2016 Dear sir
I recive a Notice from Income tax Department Today, For Cash tranjection of Rs 1200,000 in A.Y. 2012-13.
I am not a Income tax Assassee and I not have PAN
By profesion i am a farmer.
please sugest me .....what Reply......
Thanks

Trinadharao Adigarla

Trinadharao Adigarla (Expert)
Follow

11 January 2016 INCOME TAX DEPARTMENT ASK WHAT IS 12,00,000/- ,HOW TO EARN ,WHAT PURPOSE USING Etc.
above amount is forming income send reply or Meet Local Tax Consultant or Chartered Accountant

Querist : Anonymous

Querist : Anonymous (Querist)

12 January 2016 thanks sir
I purchase tea from aasam and same was sale in my village and nearby areas, we sell tea and deposite cash in my account and send rtgs to party toward payment for tea, but ihave no invoice regarding this.
i sale tea rs. 1200000 during 2012-13,
after i close this busniss due to loss,

Upgrade to CAclubindia Pro. Subscribe Now!

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

31 July 2024 If you've received a notice from the Income Tax Department regarding a cash transaction of Rs. 12,00,000 in your savings bank account for the Assessment Year (AY) 2012-13, and you are not a tax assessee and do not have a PAN, here's how you should address the situation:

### **Steps to Respond to the Notice:**

1. **Understand the Notice:**
- The notice is likely seeking clarification about the large cash transaction, which could trigger scrutiny under income tax regulations.

2. **Prepare a Response:**
- **Acknowledge the Notice:** Confirm receipt of the notice and provide your details.
- **Explain the Source of Funds:** Clearly explain the source of the cash transaction and provide details about your business activities.

3. **Provide Supporting Details:**
- **Nature of Business:** Explain that you were engaged in selling tea, which involved cash transactions.
- **Source of Cash:** Detail how the cash was generated from your business activities, including any relevant documentation or records, even if they are informal.
- **Bank Transactions:** Provide details about how the cash was deposited into your account and any payments made via RTGS.

4. **Respond to the Notice:**
- **Online Response:** If the notice was issued through the online portal, you can respond directly on the portal.
- **Physical Submission:** If the notice requires a physical response, submit your explanation and supporting documents to the tax office mentioned in the notice.

### **Sample Response Letter:**

---

**Subject: Response to Notice Regarding Cash Transactions in Savings Bank Account for AY 2012-13**

Dear Sir/Madam,

Ref: Notice No. [Insert Notice Number] dated [Insert Date]

I acknowledge the receipt of the notice concerning the cash transactions of Rs. 12,00,000 in my savings bank account for the Assessment Year 2012-13. I am providing the following explanation in response to the notice:

1. **Nature of Business:**
I am a farmer by profession and was engaged in the business of selling tea. During the financial year 2012-13, I purchased tea from Assam and sold it in my village and nearby areas.

2. **Source of Cash:**
The cash transactions in my bank account represent the proceeds from the sale of tea. The total cash sales amounted to Rs. 12,00,000. Payments were also made via RTGS to the suppliers for tea.

3. **Documentation:**
- While I do not have formal invoices, I have maintained records of the cash transactions and RTGS payments.
- Unfortunately, I do not have a PAN, as I was not required to have one given my status and the nature of my income.

4. **Business Closure:**
I closed my business due to losses and am no longer engaged in this activity.

Please find attached any relevant documents, including bank statements showing the deposits and payments.

I hope this explanation clarifies the situation. Please let me know if any additional information or documentation is required.

Thank you for your understanding.

Sincerely,
[Your Name]
[Your Contact Information]

---

### **Additional Tips:**

- **Consult a Tax Professional:** If you are unsure about the details, consulting a tax professional can help you draft an appropriate response and ensure that you comply with all requirements.
- **Keep Records:** Maintain copies of all correspondence and documents submitted in response to the notice.

By providing a clear and detailed explanation along with any supporting documents, you can address the notice effectively and resolve the issue.