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cash deposited on demonitisation period

ranjitkarmakar (service) (305 Points)

06 February 2017

One of my client getting income tax notice for depositing cash during demonitisation period, my client is registered sales tax dealer in delhi and having cash sale during that period, than which point i have to select in incometax site, i think point no 6 is right - cash sale to un identifiable person , am i right please help me

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177864 Points)
Replied 06 February 2017

First be clear that cash sales during the period with old currency was not legal. You have to prepare cash flow as of 8th November and reply.

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ranjitkarmakar (service) (305 Points)
Replied 08 February 2017

my client total deposit of cash during demonitisation period rs 7 lacs from cash sale proceeding. Out of 7 lacs only 2.71 lac deposited in old currency i.e. rs. 1000/- & 500/- rupee note in one go (only once) and rest in new currency note in periodically from cash sale proceding. My question I have to mentioned old & new currency note on the time of reply in income tax site ? Some shop keeper having Pan No and some dont pocess pan card, so I have to reply accordingly ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177864 Points)
Replied 08 February 2017

"My question I have to mentioned old & new currency note on the time of reply in income tax site ? Some shop keeper having Pan No and some dont pocess pan card, so I have to reply accordingly?"

Yes, segregate challans, and keep ready for verification.

Even segregate the purchasers into two as identified & non-identified persons and fill details accordingly. Make sure the details of demonetized currency details are properly recorded. It will help you to sort out the verification process.