Old currency ( notes of rs. 500 & 1000/- )

This query is : Resolved

k.h.mahajan

k.h.mahajan (Querist)
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13 November 2016 Mr. Ram is of 70 yrs. Has interest on FDs Rs.3,50,000 /- after deduction of amount u/s 80 C during F.Y. 16-17 Asst yr 17-18. He has no other income i.e current taxable income is 3,50,000/- He has deposited Rs.3,00,000/- in old currency is known as past income. What will be income-tax and penalty for the Asst,year 2017- 2018 ?

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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14 November 2016 If amount deposited by you is from your savings and not incomes then it will not be taxed. However, if you are not able to prove to the tax department that it is your saving then they will consider it as your income and will tax accordingly. So, the burden of proof will be on you that Rs 3,00,000 is your savings from past taxed income kept by you in the form of cash. However, it is advisable if you consult a CA because facts need to be checked properly.

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