If the cash is not yet deposited, STOP the deposit .
Depositing cash Rs.10 lakhs to SB A/c creates problems. Stop the deposit. Do not deposit Rs.10 lakhs at a time or over a period of (1.4.2010 to 31.3.2011) to an SB A/c. You will be receiving notice from the Income Tax department for the same. Why to create problems ?
01,00,000 cash deposit to SB xyz on 1.4.10
02,00,000 cash deposit to SB xyz on 15.4.10
01,00,000 cash deposit to SB xyz on 11.5.10
05,00,000 cash deposit to SB xyz on 21.8.10
02,00,000 cash deposit to SB xyz on 31.3.11
11,00,000 cash deposit total into SB xyz. (exceeded the 10 lakhs limit- in a financial year)
The total cash deposit to a SB A/c in a financial year should be less than 10 lakhs. Avoid it. But can can withdraw any amount from the SB A/c. No restriction for that. Also you can deposit cheques of any amount. No restrictions. Restrictions are only for cash deposit .
If you have to deposit cash more than 10 lakhs, then open two or more SB A/cs and deposit less than 10 lakhs in each account (in a financial year) .
In order to unearth black money or unaccounted money income tax department has devised a system of AIR (Annual Information Return) where by all the bank operating in India to file a retrun with income tax department showing the details saving bank accounts having cash deposit more than Rs 10 lacs in a year. At a later stage income tax department uses this information to investitgate such account holder to know the source of income. If this deposit is not tax paid, tax and huge penality is imposed on account holder. It does not matter who deposit the amount, all the responsibitly is on account holder
Please consider your query in the light of this peace of information.
YOU WILL CAME UNDER INCOME TAX (AS YOU ALEADY TOLD YOUR PAN CARD NO.)NET -
YOU HAVE TO DEPOSIT TAX ACCORDING TO NATURE OF PAYMENT RECEIVED OR MAY NOT PAY ANY TAX
AMOUNT RECEIVED BY YOU IS A LOAN-DOCUMENT PROOF REQUIRED
if he deposited 10 lac cash in your saving account then I.T deptt will send you a notice asking where from u got this cash. because they will consider it that freinds is depositing the cash on your behalf that means u have this much of cash.
they will ask for source of this cash, if you have paid the tax on that source no issue if not pay the tax+intt+penalty which reduce your 10 lac almost by more than 04 lac :-)
You wont have any problems if he has deposited it at your instance. Otherwise you will have to account for it. If it is deposited in cash you or your friend has to compulsorily quote the PAN number on the voucher. You will have to account for it to the IT Authorities.
I have two account of Same bank of Diffrent branch. I am doing Job as well as Construction business. My salary and business account are different. Now my Gross income limits reached above 11 lacs includes both account. one has around 7.5 lacs and other has 3 lacs. now i want to how much tax i have to pay.is it required to pay service tax? My net income is around 3 lacs. how much tax i have to pay?
Even i am facing the same issue, IT people are asking me the same question from where u got so much of income. what is the solution for this. what should be the proof documents i can submit to them...Please help regarding this