someone told me that the amount withdrawn from the salary account is considered "spent" by income tax department and the department assumes that i have the money equal to - Money deposited by employer as salary MINUS Money withdrawn by me For example, suppose I earn 10 lakh rs from salary in a year. Further suppose I withdrew the whole amount in form of cash withdrawals / online purchasing transactions. At the end of the year, I have almost no money in my account. In this situation, if I buy a house worth rs 10 lakhs, is it illegal/unjustifiable? In other words, does the income tax department "assumes" that the withdrawn money is already "spent" by me?