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Help me about income tax

sandeep Kumar (Government job) (28 Points)

06 August 2016

I am a salaried person in government service. I got salary around 30000 per month and i file income tax return every year and i withdraw my salary every month for helping my relatives and friends . After doing this for 5 years they give me back my money around 13 lakh cash .so if i deposit this money in my account at once .so i have to pay income tax again on this money.

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3 Replies

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 06 August 2016

Cannot say for sure, such transactions look shady, how can 5 years loans be paid back just in one year accumulating so much cash? Are these relatives in perview of 'relatives definition'?? Are these well documented? Have you given in cash and taken back in cash?? If these were personal loans any documentation or just word of mouth?? You may have hard time explaining the spread of such transactions over 5 years to IT deptt. Right now if you deposit no issues, no taxation but if they query you then explaination may be needed thats what I understand.

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sandeep Kumar (Government job) (28 Points)
Replied 06 August 2016

Not accumulate in one year they give this to me time to time but then some otherone take and i didn't have any documentation of all .but if you tell me i can do documentation now

Jayesh Vyankatrao Pawar (Accounting & Taxation) (51 Points)
Replied 06 August 2016

Hi,

In future Be ready for below, if you are asked to prove by income tax department.

if you have salary 30000 per month then your 5 year salary is 1800000/-

loan given is Rs1300000/- during 5 years, they will examine your bank account and see that we had given from your declared income in incometax return in 5 years they will see your expense, income and Bank Balance.

it will be helfful,if you have supporting Document for the loan transaction

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