Income of fy 13-14 deposited into bank account in fy 14-15

Tax queries 685 views 5 replies

Kashinath

Accountant

25 Points Joined June 2013

Dear All,

I have a doubt in income tax returns and especially about how bank transactions have to be dealt with.

In FY 2013-14 (AY 2014-15), apart from my salary, I have other income which I will be showing in my IT returns and paying tax for the same. The 'other' income that I have got is in the 'form of cash' and not deposited in my bank account yet.

Income from 'other' source is around 3 Lakhs.

My queries about this are:

a) Can I deposit the cash into my bank account now ? (i.e. in FY 2014-15 [AY 2015-16])

b) Is there chance that the automated income tax scrutiny selection system can cause problem in next year i.e. amount of deposit > declared income for FY 2014-15 (AY 2015-16)

Since all my previous returns had only salary component I have never been in this kind of situation.

Thanks and Regards,

Kashinath S.

Replies (5)

CA Chandani

217 Points Joined February 2009

Other Income Nature to specify?

Kashinath

Accountant

25 Points Joined June 2013

HI Chandani,

The other income (in dollars) is money that I had saved during 5 months of onsite trip during FY 2013-14.

Thanks.

CA Chandani

217 Points Joined February 2009

option Can be -

to disclose the same in IT Return as Income in ay 1415 n Pay Tax as Self assesment tax

CA Raj Doshi

Practising CA

8954 Points Joined December 2013

The income is in dollars. So you must have converted the same into rupees. So now what you can do is show this income earned in cash as consultancy income under the head business / profession. In the books of accounts as on 31st march, u need to pass entry Debit Cash Credit consultancy income. So as on 31st march you have cash in hand. So then when you deposit cash in f.y 14-15 there is no problem. But most importantly , bill of conversion from dollars to rupees must kept safely. Also related bills of foreign parties from where you saved this money should be kept handy. Other option could be you can show this income under the head income from other sources saying tuition income because I think this money belongs to the company where you work but you have not reported the same and said that all money given to you for this foreign trip is used.