Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Old notes of 1000 and 500

06 December 2019

what will be the tax treatment to a businessman who accepted old notes of Rs.1000 and 500 after 8.11.2016 against sale and deposited the same into his bank accounts.

Reply
Follow
Share

3 Replies

Surendra Kumar (31 Points)
Replied 06 December 2019

No tax on this amount if the same stands explained and is genuine sale consideration..

Upgrade to CAclubindia Pro. Subscribe Now!

Kapadia Pravin (17259 Points)
Replied 06 December 2019

Since bank accepted such notes and credited to account of businessman, there is no issue as far deposit is concerned.

However onus is on businessman to prove source of money deposited as usual.

Shivam RC (Student) (23683 Points)
Replied 08 December 2019

No Tax treatment is to be done on these transactions if you prove that the transactions were genuine and explain Bank ( if so asked ) regarding the source of such money.