How much money should be deposited to get an interest of 156
Answers
This article is in for the interest of general public to avoid any harassment by the Income-tax (IT) Department in future and share it as much as possible for the sake of general public:
After announcement by our PM Modi for withdrawal of Legal Tender Character of the Old high Denomination (OHD) Bank Notes i.e. Rs.500 & Rs.1,000 currency notes, people are in a rush and waiting for banks to be open on Nov 10th, 2016 to deposit their cash in hand so that it would not become only a piece of paper.
Below are some points mentioned to be taken care while depositing the cash into the bank accounts (Saving/Current) and the IT proceedings if these do not taken care of:
1. Do not deposit cash more than Rs. 2 lakh at one time & 10 lakh cash in a year (1.4.16 to 31.3.17) in saving bank account.
Reason: This is because if you deposit cash more than the above specifies limits, you may get a notice from the IT Department (Explained below in detail). Now your question must be how do IT department will get to know that you have deposited how much cash in your accounts so to remind you the banks must have taken your Aadhar Card number & PAN details in KYC policies and also while filing your IT return for some past few years, IT department have collected such information from you like Aadhar Card, Passport, Bank details etc. Weather you submitted these details to the bank or not, but by virtue of section 285BA of IT Act 1961, all banks are required to give the detail in Annual Information Return (AIR) of 'high value financial transactions'(Account in which cash is deposited more than the above specified limit)to the IT Department by 31st August of the following year.
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Advice: Do not deposit in your account above then the specified limit until & unless you can explain the source of that surplus cash. Contact your financial advisor.
2. If you are dealing in some business and have the current accounts, then before depositing the cash into the bank, you must prepare your book of accounts (herein after referred to as BOA’s) upto the date of deposit so then you can deposit the cash as much as you have in your BOA’s. There is no such restrictions to accept the old notes (Upto Dec 30th) if you are recording that sale in your BOA’s until you are dealing in some specified business and require to take some more details from the buyer (E.g: Pan Card in case of sale of jewellery & bullion above the specified limit).
Reason: If you have the cash in your BOA’s then you are having the explanation for the source of the same.
Advice: Some businessman may try to bring the unaccounted cash into their BOA’s by showing bogus sales so before entering such malpractices, consult with your financial advisor.