Regarding banned cash deposit in bank

D.G. Mohan (Querist) 19 January 2017 This query is : Resolved
After 8 nov cash sales shot up.Sales proceeds of Rs500 & 1000 currencies we deposited in bank upto Rs15.0 lakhs.Tax invoices are accounted in vat returns also. Is it allowable

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Guest (Expert) 19 January 2017
Your casual nature of query is not worth evoking any purposeful opinion.

So, please refer various RBI circulars, as issued on day to day basis with reference to the amount of your day to day deposits in the bank.

If unable to have access to the said RBI circulars, you may consult some local Tax consultant showing him the invoices as well as the bank deposit slips.

Guest (Expert) 20 January 2017
Ask in caclubindia

Kumar Doab (Expert) 20 January 2017
The point raised by you is that sale has shot up.

As per your post: The payments are against sale and invoices are raised for each sale and invoices are accounted.

Your own tax counsel can guide you.

You can also post in sister website of LCI:

www.CAclubindia.com

Rajendra K Goyal (Expert) 20 January 2017
Did you accepted banned / demonetized notes after Nov. 8, 2016.

If so, it was illegal act and action can be taken against you.

Only Banks (except co-operative Banks) were allowed to accept such notes.

Kumar Doab (Expert) 20 January 2017
Agreed with expert Mr.Rajendra K Goyal.

The error is regretted Mr. Goyal.

D.G. Mohan (Querist) 23 January 2017
Thanks gentleman....

Guest (Expert) 23 January 2017
There is Nothing Illegal/Wrong in that.Only after Dec 31 2016 Total ban is implemented for Public and Still such Notes could be Exchanged in RBI till March 31 2017.So nothing to worry and Keep your Auditors aware of this Transactions.

Guest (Expert) 23 January 2017
Even Many Many Real Estate People were accepting Such Notes in Huge Quantity that is in Crores and depositing it in Banks till Dec 31 2016. The Only requirement is every thing to be accounted and Exhibited in IT returns and Relevant Tax or Advance Taxes to be Paid. Nothing to get Panic about that.

Rajendra K Goyal (Expert) 26 January 2017
The author has not provided the information sought.

D.G. Mohan (Querist) 26 January 2017
My doubt is since I've taken banned notes as sales proceeds from unknown persons IT may say that it's bogus sales and take action.

Guest (Expert) 26 January 2017
" Sales" it is not mandatory only to known Persons except like sales of Properties ,vehicles etc where in registration purpose the details of buyer and seller would be required.Discuss and decide with your auditors and proceeed

Rajendra K Goyal (Expert) 27 January 2017
Any transaction through banned notes after Nov. 8, 2016 was illegal / can be questioned.

Guest (Expert) 27 January 2017
Up to Dec 31 2016 there were Legal Transactions in Crores in businesses like Real Estate etc.Only Requirement is it should be transaction Accounted in Income Tax by both the Sides.The Child should not Create its Own Laws and the Child should Not Misguide the querists.The Thread is for Legal Guidance and Not to Post its imagination and No Child/Foul play would be allowed here.Let the Child/Anonymous Post its Identity First.

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