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Income tax penalty

11 November 2016

I had several transactions done through my savings account, approx 2 lakhs for the accounting period 1.4.2016 till date, most of the payments were done to my CC, so if I deposit now the cash will I be charged Income Tax Penalty Rizwan Shaikh

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (173962 Points)
Replied 11 November 2016

Please clarify: what do you mean by " most of the payments were done to my CC.." along with its accounting treatment.

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Udgam Koomar (Tax Technologist) (1949 Points)
Replied 11 November 2016

Please put more words if you need answer. Any money that cannot be account for or is not in tune with your income tax returns and is inexplicable can be a source of trouble, right now too much eye is being kept.

Rizwan Shaikh (MD) (32 Points)
Replied 12 November 2016

SIr, many thanks for your reply.

I meant to say that normally I use Credit Card and to make he payment for the same I deposit cash into my savings bank account and from there I make payments to Credit Card. So now it seems that the total accrued on my savings account has crossed 2.16 lakkhs or more from 01.04.2016 till date. So if I make more deposits which would cross 2.5 lakh, will I be liable to pay Income Tax penalty.

Rizwan Shaikh

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (173962 Points)
Replied 12 November 2016

No. The deposits from 10th Nov to 30th Dec. 2016, will be watched for any cash credits. If that exceeds 2.5 L, any inquiry may arise (that too after verifying your returns filed and any other relevant data)