Answer

ITR

Cash deposits flagged in AIS

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  1. Facts

    Banks report cash deposits above set limits as SFT. If the figure is correct, the feedback is 'Information is correct'. What matters is that the source of cash is explained and the income, if any, is in your return.

  2. Provisions and law

    • Sec 285BB (now Sec 510)Annual Information Statement of a taxpayer's reported transactions and taxes
    • Sec 68 (now Sec 102)Unexplained cash credits can be taxed as income
    • Sec 285BA, Income-tax Act 1961Statement of financial transactions by banks and others

  3. Analysis

    Ask where the cash came from. If it is business sales already in your ITR-4 turnover, keep sales records. If it came from earlier withdrawals or a gift, keep proof. Feedback cannot explain the source; it only confirms or disputes the figure. If the figure is wrong, say so with the right amount.

  4. Conclusion

    1. Confirm the deposit amount with bank statements
    2. Give feedback only if the figure is wrong
    3. Keep proof of the cash source
    4. Make sure any income part is in your return

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