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Cash deposit

Sahil (Software Engineer) (28 Points)

15 May 2012

Hi,

If i deposit 5lakhs as cash in my account. Would it be against the law or will I face any Income Tax scrutiny?

Thanks

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 15 May 2012

Yes you might face I-T scrutiny, as cash deposit in excess of Rs50k requires the depositor to quote his PAN while depositing the money witih the bank. The bank through AIR has to file the return with the I-T authorities. then it might be that your case can comeup for scrutiny & the dept would ask you about the source of such cash. You will also be required to pay tax @ 30% if you are unable to explain the source of the cash.