Find the Best Taxation Attorneys in Chennai, Tamil Nadu, India. These Income-Tax Litigation Advocates will guide you to avoid issues, Punishments, and Penalties. Appellate Lawyers office is one of the Top Law Firms in India to solve IT issues in a stipulated time. Corporate Legal Consultants for Taxation matters work on a Retainer basis for companies. Call Senior Tax Counsels for Quality Legal Support Services. In this write up let’s understand the income tax rules for cash deposits – Cash Transaction with banks.
Lawyers for disputes for IT Department Verification of Cash Transaction
Are you making cash deposit above 2.5 lakhs?
Introduction: Are you making a cash deposit above 2.5 lakhs? Being a Senior Citizen are you depositing cash into a bank exceeding Rs. 5 Lakhs? Think twice! Take professional Legal advice from Top Attorneys in Chennai. Because you may be subject to scrutiny by IT officers. Beware. Heavy value transactions beyond prescribed IT limits reflect in your Form 26AS. All bank accounts get linked with your PAN number.
Why Verification of Cash Transaction by IT Department is necessary?
Black Money has been plaguing our country for ages. Income for which no tax is being paid is black money. In earlier days, huge cash deposits – Cash Transaction took place without sources or reasons. Now it is not possible. Post Demonetization, RBI introduced rules on cash deposits above the prescribed limit. Cash deposit verification by the IT department is a tool to curb black money transactions. The IT department has made provisions to ensure RBI rules are being governed. They conduct examinations and scrutiny of assets.
Cash deposit verification for government records maintenance. Many people want to evade income tax. Their bank statements and income tax returns may hide taxable transactions. Thereby paying the least amount of tax.
What are the income tax rules for cash deposit?
Cash deposit exceeding Rs. 2.5 Lakhs from individuals. Cash deposits beyond Rs. 5 lakhs from Senior Citizens is to scrutiny assessment by income tax officers. Any cash deposits by them below the prescribed limit get assumed as prior income. / cash withdrawals /household savings. This will not be subject to income tax scrutiny.
Tax experts Attorneys for Online verification of cash deposit Matters
Online verification of cash deposits at the IT portal has made the lives of millions easy. It saves tons of time for both taxpayers and officers too. It helps to find out mismatches between cash transactions and cash deposits. You need to get your PAN e-filing registration done at the income tax e-filing portal. Our Attorneys can help you register your PAN with the income tax e-filing portal.
Legal advice of Taxation Lawyers
Upon successful registration of your PAN at the e-filing portal login to your account. Under compliance select cash transactions. Cash deposits made during a tax year gets displayed. Submit your response with details and document attachments as necessary.
It is advisable to seek Legal advice of Taxation Lawyers before you reply. Based on the response by you , the AO may need further verification in some cases. Submit response and replies online.
Words of Wisdom
Verification of cash transactions may be of small trouble for taxpayers. But the bigger picture and initiatives taken by our government are applauding. Let us play our part in eradicating black money and Make a bright future for generations to come. Jai Hind!
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Contact Top Taxation Law Firms
Appellate Lawyers Office Specialize in Tax Litigation Matters. Consult Top Income Tax Litigation Attorneys in India to resolve Verification of cash transactions Matters instantly.
FAQ for Verification of Cash Transaction by Income-tax Department
The Income-tax Department verifies cash transactions through a process known as “Operation Clean Money.” This involves scrutinizing transaction details, especially cash deposits, to ensure compliance with tax regulations.
The SOP is a set of guidelines established by the Income-tax Department for conducting cash transaction scrutiny. It ensures a standardized and fair approach in assessing cash deposits, maintaining transparency and consistency.
Yes, Income Tax Officers have the authority to issue income tax notices under section 133(6) to assess individuals and seek clarification regarding their cash transactions.
It is crucial for cash transactions to match filed income tax returns to maintain accuracy and compliance. Any disparities may lead to the issuance of income tax notices under section 133(6) for further investigation.
If served with an income tax notice under section 133(6), individuals should promptly offer clarifications regarding the online cash deposit verification process to address any concerns raised by the Income-tax Department.
What is a Cash deposit?
A cash deposit is a way of putting money into a bank account through.- physical cash or money or money transfer. It’s a financial activity.- where a person keeps money in a financial institution.
What are the provisions and guidelines for the verification of cash deposits by IT?
Under the Income Tax Act, the Assessing Officer (AO) has the authority to request transaction details for cash deposits, often carried out under “Operation Clean Money.” The department has established a Standard Operating Procedure for this scrutiny, which Income Tax officers strictly adhere to. These officers are empowered to issue income tax notices under section 133(6) for assessment purposes. It is crucial for individuals to ensure that their online cash deposits align with the information in their filed income tax returns for a given tax year. Failure to demonstrate correlation may result in the issuance of an income tax notice under section 133(6).
What are all the guidelines to solve income tax notice u/s. 133(6) issue?
You may get this notice when you have given a response to the online verification of the cash deposits. Notice for online verification of cash deposit gets served through ITD systems only. Hence it is important to check your mails and communications from IT on a regular basis. The Assesse has to submit an online response for this notice. Our consultants can help you file your reply to notice u/s. 133(6)
How to handle income tax notice u/s. 133(6) for online verification of cash deposit?
Did you get serviced with handling income tax notice u/s 133(6)? No worries! Auditors in Chennai are experts in income tax matters. Get the matter handled the professional way with professional tax consultants. Assessing officer finds any cash deposits not relating to your business activity. Then AO issues notice. AO has to follow guidelines while giving notices u/s. 133(6).
