Income department has started sending notice u/s 133(6) . The notice under this section enables the income tax authorities to compel Individuals / Companies /AOP /trusts to furnish such information as may be necessary as per the Income tax department.

Companies usually follow the trend to complete their accounting at the time of filing of return. Department is seeking information regarding the Cash Balance held by the company as on 08/11/2016 and the denominations of the Cash held as on the date. So, to give proper response against the same notice comes into picture only when proper accounting or we can say real time accounting and regular compliance is conducted by the company .

So we advise the companies to follow real time accounting not just to give response under this notice but also to safeguard your business and have a complete record of all the transactions entered into by the company.

However it must be noted that any failure or delay in response in furnishing the information may result in penalty.  So don’t just blindly deposit the money .Hire a consultant or a financial advisor before depositing the money.