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Cash deposit in current account

Kalpesh Mutha (B.com, F.C.A, C.S) (239 Points)

17 November 2016

Hi,

One of my client had withdrawn 60 lakhs from current account last year. Can we now deposit the same at one stretch in the bank. ?

Hope there wont be any notices as he had withdrawn this from his current account only

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 17 November 2016

Check cash balance with accounts As of 08.11.2016, before depositing last year's withdrawals.

Notice bound to come, prepare for justification.

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Mahdi kamal (Tax Consultant) (46 Points)
Replied 17 November 2016

The Central Board of Direct Taxes (CBDT) has amended rules in the Income Tax Act and asked banks to furnish a statement of financial transaction in one or more current accounts of a person for cash deposits of Rs 12.5 lakh and above between November 9 and December 30. ... Above on the limit required suitable source of income.

Shankar Chakraborty (Tax Consultant ) (23 Points)
Replied 17 November 2016

As per balance sheet should be checked last year cash closing balance.

Kalpesh Mutha (B.com, F.C.A, C.S) (239 Points)
Replied 17 November 2016

As per B/S as on March 2016, Cash balance is 60 lakhs. I hope there is no risk involved. If Notice comes there is valid justification of cash available in hand.