I paid 2 lakh to my father one year before as there was some operation he had to undergo and he needed the money, so I transferred that to his account, After one year he returned that money to me. There was no interest that he paid me. I paid him 2 lakh and after one year he returned 2 lakh.
I did not show this amount in my ITR. my fathers passbook shows that the amount he received from me and my bank passbook shows that I received the same amount from him. So If my return is selected for scrutiny, will I have to pay any tax or penalty. This is not a income so I did not show it in ITR. was it wrong on my part not to show this in ITR?
31 May 2016
no, tax will be applicable, you are giving by bank transaction, and you can gift the amount to your father and father can give to son, relative can give interest free amount.
31 May 2016
No need to worry... no tax will be levied on the same. In case your ITR is selected for scrutiny, you just produce the copy of passbook to AO. In case you want more evidence, you can also execute an loan agreement or gift deed in this regard
CAclubindia
