Current Account Sweep In FD of 1.26Cr reporting a SFT-05 in AIS, Income Tax Notice?

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gagansc19653

Hello Guys

We have a current account in Kotak Mahindra Bank with Sweep In FD(Activmoney) activated.

Daily payments from our clients are converted to FD and when required is liquidated to cover any payments.

Now the bank has reported the total amount of FDs created in a FY, and reflecting in AIS. The gross amount is 1.26cr which is very high and can't be accordance with the ITR, which is based on P&L.

Though it is also mentioned in the AIS that FDs of 1.2cr has been liquidated/closed, with only 0.06cr FD remaining at the end of FY. The interest reported by the bank in AIS on all the FDs have been offered to tax. 

What documents can we keep/ask from the bank in the FIRST PLACE to reply to the department, if we get any 148A/143(2) notice by any mad AO or falsely flagged information by CBDT risk system, for source of investment u/s Sec 69,69A (Allahabad HC imposed Cost of Rs. 50 Lakh on Department for creating illegal Income Tax demand , CBDT instructs officers to verify database before pulling up taxpayers)

Does anybody have any such experience?

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Deal Lieutenant Deal Lieutenant
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I am curious. If you have a business, don't you have an accountant/CA for the business?

Deal Newbie Deal Newbie
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We have a CA with less experience. He says if you are unlucky you could get at least get a notice, and if AO is mad and adamant/targeted to raise a demand order, we can easily win in appeal orders.

I just want feedback and any experience of you guys.
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Benevolent Benevolent
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1.26cr very small amount & its business so you may not even get notice

Keep the statement ready, interest accrued,tax paid

Post Emperor Post Emperor
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Pay tax for the interest received that's all

U don't get any notice.

I always use fd and got od from HDFC Bank, SBI and DBS

Deal Lieutenant Deal Lieutenant
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What's the interest amount?
Deal Newbie Deal Newbie
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70k only, as many FDs existed for only 1-3 weeks.
Helpful Helpful
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@gagansc19653

its time to hire a good CA

there are a lot of factors to this

but this is not a reason for a notice alone

the whole point of a good CA is to avoid these kind for situation in the first place.

hope you start taking actions so you are more educated in the process 

Deal Newbie Deal Newbie
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How a good CA will avoid these kind of situation in the first place?😐

The Kotak Mahindra Bank reported it to the AIS, which can be avoided in upcoming FY, only if we stop this Sweep in FD feature(Activmoney).

I just wish to learn know other's experience of getting or not getting a notice in this case.
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Benevolent Benevolent
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if u r already showing that interest income in p/l there would be no issue, in case ur ca already doing that he is right about unlucky case ( auto notice by system ) and winning in appeal 

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