Cash directly deposited into bank account by debtors-40A(3) applicable or not, Income Tax

[Amit Kumar]

Sir, various debtors have directly deposited cash in my current account from different location. what is the impact on me as a creditors and impact and violation on debtors.

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

In my opinion there will be no impact on you. However the debtors will be considered violation of

Section 40A(3) of the Income Tax Act, if the cash deposits exceeds ₹ 10,000/- in a day.

[ARVIND JAIN]

Agree with the view of DR.MARIAPPAN GOVINDARAJAN Sir, hope the deposit amount is not more than 2 lakh in one instance against one bill go through section 269SS and u may have to file Form No. 61A - Annual Information Return or Statement of Financial Transactions] under section 285BA of the Income Tax Act, 1961