watch_later 04/02/18

Respected sir,

One of my friend got a notice for depositing cash greater than 10 lakh in saving bank he is semi educated he did not have idea for deposting cash in current and previouslu he has never filed return.

So now my doubt is can we file 4S and show the amt deposited as sales ?? But in vat return he has shown sales as 6 lakh only for entire year so now wat can be the solution as per ur advice ??

1 Response | Latest response: 04/02/18 | Sort by Likes(thumb_up) Recent | Income-Tax Reply
watch_later 04/02/18

You should compute his income from past years and arrive at cash balance.

The money he deposited is not high, but you have to check overall deposits in previous years. If his income in each year is higher than exemption limit, file return for him.

You can file using 4S, that will be not an issue.

Even though receipt for the year is 6 lakhs but check his profit for past years, less drawings and check cash in hand.

If he has avoided tax liability then it is advisable to pay tax and leave a peaceful life as income tax is going to be tough in future.


Sign up to discuss taxation, accounting and finance topics with experts from all over India.

Join Discussion