limit of cash deposit

251°
Deal Lieutenant
kukdookoo

suppose a person is teaching tuitions and is ghostwriting articles and is getting paid in cash, no tds deduction. has no other job, only means of other income is fd interest and is below taxable income after all deductions. as monthly income will be varying but lets suppose 15k-25k so gst will also not be applicable.

- from income tax perspective will it be fine to deposit money earned in a month in bank as cash?
- all money deposited together or in parts?
- what proof should the person keep for source of income as the amount earned will be in cash?
- are individuals like these classified as self employed?asking because the person has no gst number. itr-2 will be for this person?

@Maverickz @panchabhut @karanoshan @Sudarshan61 @getready @guest_999

Expired
50 Comments  |  
9 Dimers
  • Sort By
Deal Cadet Deal Cadet
Link Copied

upto 10L a year is a safe amount, dont deposit more than 50k a week

a person can keep a signed paper ( receipt) with a revenue stamp on it, however limit for this is 10k a day per transaction per client 

There are 3 options -

Easy one, file ITR 1 as other income deducting all expenses to run your profession 

Little complex one, File ITR 4 as a consultant, show full income ( only 50% will be taxable income under this)

Most Complex, File ITR 3 as business, create bs & pnl

However for cash deposits below 10L per year no one is going to come after you

Deal Lieutenant Deal Lieutenant
Link Copied
karanoshan wrote:

upto 10L a year is a safe amount, dont deposit more than 50k a week

a person can keep a signed paper ( receipt) with a revenue stamp on it, however limit for this is 10k a day per transaction per client 

There are 3 options -

Easy one, file ITR 1 as other income deducting all expenses to run your profession 

Little complex one, File ITR 4 as a consultant, show full income ( only 50% will be taxable income under this)

Most Complex, File ITR 3 as business, create bs & pnl

However for cash deposits below 10L per year no one is going to come after you

a person can keep a signed paper ( receipt) with a revenue stamp on it, however limit for this is 10k a day per transaction per client
sir please explain this. no one who teaches at home takes signature of students. students pay like 1000-1500 per month. for per article publisher pays 2000-2500 if accepted.

suppose a person earned 25k, then depositing 25k together or 15k+10k with a difference of a week or ten days is ok?

paji as of now person is filing itr 1. now person will redeem mutual funds which will come under capital gains so itr 3 is complusory? if itr 3 then are bs and pnl compulsory? it will be a headache as income of person is not much

Critic Critic
Link Copied

For tuition fees, better to shift to UPI based payments. You can even have a record of who all paid.

Fro ghost writing etc, you can use the cash for personal expenses. 

Deal Lieutenant Deal Lieutenant
Link Copied
panchabhut wrote:

For tuition fees, better to shift to UPI based payments. You can even have a record of who all paid.

Fro ghost writing etc, you can use the cash for personal expenses. 

paji if students or their parents are willing to pay in cash, as amount is small so can’t the person note down in copy the details of student who gave them how much cash in month?
cash from both tuition and ghostwriting is used for personal expenses etc.but they want to deposit in bank as they make card payments and want to deposit in bank only.

paji what will outcome of itr type in this scenario? https://www.desidime.com/discussions/limit-of-c...

Deal Lieutenant Deal Lieutenant
Link Copied
getready wrote:

They don’t care about people earning/depositing 15-25k pm. Based on the available IT rules for STF, upto 1lakh cash deposit is fine (per transaction) and 10 lakh for the entire financial year

Income tax: These 5 cash transactions may attract I-T notice

suppose a person earned 25k, then depositing 25k together or 15k+10k with a difference of a week or ten days is ok?
for how much per month earning people in cash do they tighten rules?

Critic Critic
Link Copied

SBI permits only 3 free cash deposits per mth. Other banks also have similar restrictions. So that also will be a problem. 

Critic Critic
Link Copied
Expand
kukdookoo wrote:

suppose a person earned 25k in a month so if it is deposited all together then it is okay?
https://www.desidime.com/discussions/limit-of-c...

Only thing you need to check is how many & how much free cash txns allowed by bank in a month. As long as single cash deposit txn is less than 1 lakh & total cash deposit is less than 10 lakh in a year then it is within income tax dept rules.

MF/market gains can be filed in itr2 in which tuition income can be shown as “others” income. itr3 is only compulsory for intraday/futures/options/speculative trading.

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
kukdookoo wrote:

suppose a person earned 25k, then depositing 25k together or 15k+10k with a difference of a week or ten days is ok?
for how much per month earning people in cash do they tighten rules?

25k per month is no issue. prefer private bank than psu. There is more cash in system after demonetization . Don’t fear cash as long as you declare in ITR

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
bohemian wrote:

25k per month is no issue. prefer private bank than psu. There is more cash in system after demonetization . Don’t fear cash as long as you declare in ITR

paji can income tax challenge or reject proofs that suppose 15k was paid by 10 students or can they ask the details of students like id proof etc.or their parents? @guest_999

Critic Critic
Link Copied
Expand
kukdookoo wrote:

paji can income tax challenge or reject proofs that suppose 15k was paid by 10 students or can they ask the details of students like id proof etc.or their parents? @guest_999

Bhai itni mehnat to mallaya aur nirav ne bhi nahi kari hogi apne scam hide karne mein jitni tum kar rahe apni income declare karne mein. IT dept kay pass itna time nahi hai ki tumhaare 15k cash deposit ki details check karega jab black money waale 15 crore idhar sey udhar kar dete hain cash mein.

@Ramta_Jogi

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
kukdookoo wrote:

paji can income tax challenge or reject proofs that suppose 15k was paid by 10 students or can they ask the details of students like id proof etc.or their parents? @guest_999

if income is below 5L they hardly bother for such things. Just file ITR 1

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
guest_999 wrote:

Bhai itni mehnat to mallaya aur nirav ne bhi nahi kari hogi apne scam hide karne mein jitni tum kar rahe apni income declare karne mein. IT dept kay pass itna time nahi hai ki tumhaare 15k cash deposit ki details check karega jab black money waale 15 crore idhar sey udhar kar dete hain cash mein.

@Ramta_Jogi

paji hum jaise middle class valo ko sochna parta ha. hum jaiso ko hi ragadte ha yeh log.

Mobile Guru Mobile Guru
Link Copied
Expand
kukdookoo wrote:

suppose a person earned 25k, then depositing 25k together or 15k+10k with a difference of a week or ten days is ok?
for how much per month earning people in cash do they tighten rules?

15-25k is nothing!
If the cash deposit value is close to 100k or more than that, then you can opt for different banks* to deposit the amount
^^ This is unnecessary for 25k or even 50k

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
getready wrote:

15-25k is nothing!
If the cash deposit value is close to 100k or more than that, then you can opt for different banks* to deposit the amount
^^ This is unnecessary for 25k or even 50k

15-25k is nothing!

paji kyio ke liye ye bahut ha. if 1 lac is deposited but total deposits in all banks is less than 10 lacs then is it ok?

Deal Cadet Deal Cadet
Link Copied
Expand
kukdookoo wrote:

15-25k is nothing!

paji kyio ke liye ye bahut ha. if 1 lac is deposited but total deposits in all banks is less than 10 lacs then is it ok?

15-25k is nothing means ki itna deposit aram se kro esa
not the other way around ki 15-25k Rs is nothing

Mobile Guru Mobile Guru
Link Copied
Expand
kukdookoo wrote:

15-25k is nothing!

paji kyio ke liye ye bahut ha. if 1 lac is deposited but total deposits in all banks is less than 10 lacs then is it ok?

It all depends on the reporting authority (Bank cashier in this case*). They might even report a 50k/month or 7/8L/year cash deposit transactions if something doesn’t feel right


Check this below thread where the dimer deposited exactly 98k (49k x 2) for 5 consecutive months 


Today as usual I went to deposit money in both the accounts and the cashier forced me to say the reason for cash deposit as he says there is frequent transaction in my account.

He angrily replied that, if you don’t want to say the reason, from next time use deposit machine instead of coming here. We have the right to ask regarding the transactions. But there is no deposit machine nearby and I have to travel 6 kms to other branch for that.


SBI employee forcing to say the reason for cash deposit

Deal Cadet Deal Cadet
Link Copied
Expand
kukdookoo wrote:

a person can keep a signed paper ( receipt) with a revenue stamp on it, however limit for this is 10k a day per transaction per client
sir please explain this. no one who teaches at home takes signature of students. students pay like 1000-1500 per month. for per article publisher pays 2000-2500 if accepted.

suppose a person earned 25k, then depositing 25k together or 15k+10k with a difference of a week or ten days is ok?

paji as of now person is filing itr 1. now person will redeem mutual funds which will come under capital gains so itr 3 is complusory? if itr 3 then are bs and pnl compulsory? it will be a headache as income of person is not much

If u have mutual funds u can file ITR 2 which includes stocks and MF
Regarding, receipt, I never asked student or parents to sign it
you can yourself sign for both, just as an evidence
however let me tell you, this is an overkill
No one is going to question you for 5-10L of income a year
Also dont get into ITR 3, you need to have bs and pnl for that
instead u can do ITR 4 or ITR 2
ITR 2 will be easiest, just record your income after expenses in other income
and can separately report mf in ITR 2

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
getready wrote:

It all depends on the reporting authority (Bank cashier in this case*). They might even report a 50k/month or 7/8L/year cash deposit transactions if something doesn’t feel right


Check this below thread where the dimer deposited exactly 98k (49k x 2) for 5 consecutive months 


Today as usual I went to deposit money in both the accounts and the cashier forced me to say the reason for cash deposit as he says there is frequent transaction in my account.

He angrily replied that, if you don’t want to say the reason, from next time use deposit machine instead of coming here. We have the right to ask regarding the transactions. But there is no deposit machine nearby and I have to travel 6 kms to other branch for that.


SBI employee forcing to say the reason for cash deposit

thanku paji. 10 lakh cash deposit is total of all savings account?
suppose 1 lakh deposited in account 1 in a year
24k in account 2 in a year and so on. so, all banks tell income tax that this person deposited this much and then income tax software adds all amounts?

Deal Lieutenant Deal Lieutenant
Link Copied
Expand
karanoshan wrote:

If u have mutual funds u can file ITR 2 which includes stocks and MF
Regarding, receipt, I never asked student or parents to sign it
you can yourself sign for both, just as an evidence
however let me tell you, this is an overkill
No one is going to question you for 5-10L of income a year
Also dont get into ITR 3, you need to have bs and pnl for that
instead u can do ITR 4 or ITR 2
ITR 2 will be easiest, just record your income after expenses in other income
and can separately report mf in ITR 2

you can yourself sign for both, just as an evidence

paji isme kal ko vo signature mismatch ya koi panga nahi dalenge?

Deal Cadet Deal Cadet
Link Copied
Expand
kukdookoo wrote:

you can yourself sign for both, just as an evidence

paji isme kal ko vo signature mismatch ya koi panga nahi dalenge?

Yaha log 1000s of crore leke bhaj gaye hai,
if the government want to screw you, you have already broken 1000s of laws
as per Municipal law you cannot do any renovation in your house unless authorized
as per traffic law, you cannot drive your vehicle if it is not washed
as per excise law, you cannot drink or buy or store alcohol without a alcohol permit
so chill, unless you are into anti national activities, you need to worry about such amounts of money

Mobile Guru Mobile Guru
Link Copied
Expand
kukdookoo wrote:

thanku paji. 10 lakh cash deposit is total of all savings account?
suppose 1 lakh deposited in account 1 in a year
24k in account 2 in a year and so on. so, all banks tell income tax that this person deposited this much and then income tax software adds all amounts?

Yes, 10L for all savings accounts and 50L for current

Why would a bank report these small 1L,24k per year cash deposits? They do report when something is off the limit / feels suspicious (Refer the SFT table i linked in previous post here, those are the things banks report). You can include all these small cash deposits via SFT if you want too


So, technically you can deposit more than 10L cash deposits via multiple banks (Which i wouldn’t recommend) and still avoid getting any notice from the IT dept but if they found out discrepancies somehow or if you fail the correct the statement then you might end up paying a lot as a penality (May be a lakh?)



Deal Cadet Deal Cadet
Link Copied

File ITR3 under presumptive income
Simple stuff

Deposit as much as u want then

Critic Critic
Link Copied
Expand
kukdookoo wrote:

paji aapne 1 thread me kaha tha ki system does not know the difference between 200 and 2 lakh so system no nahi panga dalega isme?

That was for savings acc interest data which automatically goes to IT dept & on which you are supposed to pay tax over 10k, here you are talking about manual cash deposit for which tax starts from above 2.5 lakh in a year.

Critic Critic
Link Copied
kkrulesdnation wrote:

File ITR3 under presumptive income
Simple stuff

Deposit as much as u want then

Filing itr3 is anything but simple.

Deal Cadet Deal Cadet
Link Copied
Expand
guest_999 wrote:

Filing itr3 is anything but simple.

Tax consultant will file with following details

Total receipt in bank
Total expense

Interest income
FD interest

Ekdum easy hoga return fir

replyuser
Click here to reply
Reply