Incometax

there is no tax in depositing money but yes a source of this money can be asked and if you are not able to explain the same then penalty can be levied/

dear sir this is not my money but some person give for for safe custody and deposit this in my account and now it officer is demanding tax penalty for this amont i have already show him proof of that money but he is not accepting any proof please guide me

May be IT Officer is not satisfied about the proof shown/submitted to him. Consult some CA or advocate after showing all the communications through notices with ITO. Only once one knows about the reason of the rejection that one can guide you.

i put this subject for knowldge

thanks

Accepting loans in cash and repaying them in cash is prohibited u/s 269SS and 269T. So the officer is correct .

kindly read the exceptions of section 269SS and section 269T. 

CA Anurag, How is the above transaction covered under the exceptions of 269SS? Kindly explain.

Thank you for altering your earlier comment.

The exceptions are Govt, banks, cerrtain corporations institutions and assessees having agricultural income. In the above case loan (safe custody) has been received by him in cash and then deposited, so 269SS is violated.

A forum like this is the best place to test and update our knowledge. It helps up to serve our clients better.

Kindly share your views about the case.

Agree with Madhavi ma'am

but if one has reasonable cause/urgency to accept deposit/loan in cash and no intention to conceal it later he can be waived off the penalty so imposed for such violation.There have been several cases in this regard.

In the abscence of that penalty can not be waived off.

How is it possible...?

If it is possible all block money holder to give/share to some custody...

I think they are called Binami