limit of cash deposit
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?
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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
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?
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...
SBI permits only 3 free cash deposits per mth. Other banks also have similar restrictions. So that also will be a problem.
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...
File ITR3 under presumptive income
Simple stuff
Deposit as much as u want then
To be on the safer side, you can open a current account and do cash deposits in that and also all expenses to be paid out of that current account itself.
Transfer money out after filing ITR the next year, as per profit.
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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