Guddi (employee) (774 Points)
24 September 2020hello everyone
can cash deposited by partners in current account of partnership firm account be attributed as capital of partners. Total deposit on a single day is around Rs. 14 lacs. Likewise there are few more instances of cash deposits more than 2 lacs on single day by partners. Will this go for qualification in tax audit report?
kindly clarify
CA Kushwanth AVSR
(CA in Practice CMA by Qualification)
(1593 Points)
Replied 24 September 2020
Is the amount deposited by partner in current account of the firm or gave cash to the firm.?
Guddi
(employee)
(774 Points)
Replied 24 September 2020
Cash is deposited into firm's current account
CA Kushwanth AVSR
(CA in Practice CMA by Qualification)
(1593 Points)
Replied 25 September 2020
If the cash is deposited in firm's current account, then cash is accepted by bank on the behalf of firm. So, there is no contravention of section 269ST as bank has exemption for the same under section 269ST. So, there will be no qualification for tax audit report.
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