SCRUTINY OF MY ACCOUNT

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2011 RECENTLY I RECEIVED A NOTICE FROM INCOME TAX DEPARTMENT REGARDING THE SCRUTINY OF MY ACCOUNT.ON SPECIFIC DATE I VISITED THE OFFICE WITH MY BOOKS OF ACCOUNTS.
THE ASSESSING OFFICER ASKED FOR THE PASSBOOK OF MY SAVINGS ACCOUNT.,WHICH I SHOWED TO HIM,
HE ENQUIRED ABOUT THE CASH DEPOSITS MADE IN THE ACCOUNT WHICH EXCEEDED RS:2000000/-.BUT THESE DEPOSIT WAS NOT A SINGLE DEPOSIT BUT DEPOSIT OF 4-5LACS OVER THE FINANCIAL YEAR,AND OUT OF THE SELF CHEQUES WITHDRAWN BY ME AND WHICH WERE LATER DEPOSITED IN THE BANK( I HAD SUFFICIENT CASH BALANCE IN MY ACCOUNT).
IN SUCH A CASE DO YOU SEE ANY PROBLEM.EVEN AFTER GIVING THE COMPLETE DETAILS OF CASH WITHDRAWLS AND DEPOSITS HE ASKS FOR THE REASONS FOR WITHDRAWING THE AMOUNT FROM THE SAVINGS ACCOUNT,CAN HE QUESTION THE REASONS?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 July 2011 To substantiate your claim, you have to prepare & furnish cash book or date wise cash statement showing inflow and outflow of cash. He will be satisfied after going through the above.

U S Sharma

U S Sharma (Expert)
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17 July 2011 a cash flow statement showing the cash deposited to bank will solve the issue

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Querist : Anonymous

Querist : Anonymous (Querist)

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 July 2011 When you are before him, how did you feel?

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Has he been not an authority, he can not ask you.
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The money is yours, but the utilisation of it whether generated any income to you- questions related thereto can be asked by him.

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You have to show genuine reasons of withdrawals and deposits.

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You can say like , "Sir, I want to purchase a Car and the seller being unknown to me/ residing in a village/ having no bank account being a farmer/
required the payment in cash only. I withdrew cash. But I do not find the car suitable -again deposited "

or

" I want to take a loan from Bank which requires some turnover in my account."

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What I mean to say -is either say the correct reasons or make them genuine stories so that the same can be believed.
While framing your submission also consult a CA who can assist you in this regard very well.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2011 THANKS FOR UR REPLY SIR,
IF I AM NOT IN A POSITION TO DISCLOSE ANY GENUINE REASONS FOR WITHDRAWLS,WHAT AM I LIABLE TO PAY. WHAT ACCORDING TO YOU HE CAN ASK ME TO PAY FOR THAT?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 July 2011 HE CAN NOT ASK YOU TO PAY ANYTHING
(EXCEPT MONEY). YOU FIRST DECIDE THE REASONS, WHETHER THE SAME ARE REASONABLE OR NOT COULD BE DECIDED LATER. I HAVE MENTIONED 3-4, EXAMPLES IN MY PREVIOUS REPLY WHICH ARE EVERGREEN. PL. CONSULT A CA TO WHOM YOU KNOW. IN CACLUB ALSO YOU MAY FIND A CA FROM YOUR CITY.

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