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Urgent query on currency deposit rs. 500 and rs. 1000

Sunaina Jain (Job) (92 Points)

09 November 2016

For the deposits made in current account on 10.11.2016. Out of the deposited amount, the books of account balances will be taken from date 08.11.2016 or a later date ? As I am still accepting the currency Rs. 500 & Rs. 1000 as I have a grocery retail business and people need to be provided with basic necessity things. I have a current account. Kindly clarify . This is very urgent.

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 09 November 2016

Unless fabricated, it should be as on 08.11.2016; as from the midnight it has been demonetized.

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pranjit dutta (7 Points)
Replied 10 November 2016

Dear Concerned , My mom who is a housewife, and looks after the Rent (landlady) matters of our Residential Propety has a cash amount of Approx 9.5 lacs of 500/1000rs Denominations saved over a period of 4-5 years. Currently she is a senior citizen and has a bank account as well with valid PAN details made prior 2years . However she has never filed income tax returns. Now when Modi Govt has done demonetization , my Mom is liable to deposit the amount in her Bank Account. However as the amount is More than 2.5 lacs and also not disclosed in the IT return (not filed) , she is likely to attract huge penalty chages . Kindly suggest a suitable solution to the issue.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 10 November 2016

@ pranjit dutta: " ...she is likely to attract huge penalty chages......"

At this stage there is uncertainity about any HUGE PENALTY. So, need not worry to that level; but be prepared to pay liable taxes. The penalty may not be harsh in genuine cases.

Deposite the cash to her account. By way of Gifts (smaller amount), some part may be deposited in her relatives, or your account. Finally file return of this year and pay tax as per her slab. Some available deduction under section 80C, 80D etc may be availed.

Finally, get prepared for any penalty.

Take help of local CA and check if the (rental income) return of earlier years can relieve you to some extent.

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Sunaina Jain (Job) (92 Points)
Replied 10 November 2016

Do we need to deposit the entire cash as lying in books on 08.11.2016 in one go in the bank account ?

Or can we deposit the amountt so lying in books on different days and multiple times?

The amount will be the same as in books on 08.11.2016.

Actually, there is so much messages reagrding that the money has to be deposited in one go or else bank will not accept the money.

Kindly Clarify.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 10 November 2016

@ Sunaina Jain:

Its your money, you are owner and even liable for any justification. So, don't get carried away by rumours. Watch out for any official notifications/declaration. The time limit is upto 30 Dec. 2016 and even after that for special cases.

By the way what matters you to deposit it at one go?

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Niraj Bora (Proprietor) (22 Points)
Replied 11 November 2016

The receipts has to be midnight 08.11.16 & not of later date, as old notes are no longer legal

swati (Unemployed) (300 Points)
Replied 17 November 2016

currently I don't have any income . But I have received gifts on various religious occasions . And a little cash from past savings . currently my taxable income is below exemption limit. Can I deposit cash in bank. do I still need to file return of income ?

sushil jaiswal (.) (127 Points)
Replied 17 November 2016

No IT return is required if you have below taxable income.You may deposit any amout out of your accumulated funds in previous years.In case of any scrutiny,you have to prove how you derived your income in past.So no need to worry if you have a genuine source.

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