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How to deposite a huge cash in savings account without getting into trouble

Hot Star (Manager) (31 Points)

25 August 2016

I have received 4 lakh in cash as a gift and want to deposit it into my savngs account. Can anyone help me with how to do that without getting into tax trouble.

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14 Replies

KAPIL JAIN (Job full time as well as part time) (232 Points)
Replied 25 August 2016

1 Like

ACA Anurag (Enjoy the little things) (14706 Points)
Replied 25 August 2016

Dear User,

If u r deposing cash in saving account above the taxable limit then u have to show the same in your return.

Don't worry there would not be any trouble as cash is less than 10,00,000

kindly like if my response has helped you

3 Like

Hot Star (Manager) (31 Points)
Replied 26 August 2016

Dear Anurag,

Thanx for your reply. Someone told me that i can be asked by income tax personel regarding the source of the money. Can you please help me with this. If this is true then what explaination should I give. Thanks in advance.

subin vr (17 Points)
Replied 26 August 2016

You might receive a notice from IT Dept if the aggregate cash depsoit in a FY is more than Rs.2 lakhs in your savings bank account. It is advised to file IT Return to avoid such notice. Else you have to route the amount through multiple savings bank accounts.

1 Like

ACA Anurag (Enjoy the little things) (14706 Points)
Replied 26 August 2016

Dear User,

U have received the amount as gift so u have a valid answer but the person from whom you have recieved the gift would be questioned.

and if your filling e return then don't worry

just deposit the amount oj break basis

Kindly like if my response has helped you

gaurav agarwal (c.a) (21 Points)
Replied 26 August 2016

i didnt get the break basis deposit of money Anurag can u plz explain?

Shankar BA(Hons) (CS) (278 Points)
Replied 26 August 2016

Dear Hot Star brother,

1) From your question it is confirmed that Rs.4 Lacs is a "Gift" to you.

2) "Gift Tax" has exemptions.

3) Money gifted by Parents, Siblings, In-laws or even by wife are "Totally" exempted from Taxes.

4) Make sure the money you want to deposit is in the form of Cheque or DD or go for RTGS.

5) If not, the banker has to be satisfied by showing the source of funds by the giver.

That's all.Nothing complicated. Enjoy.

1 Like

ACA Anurag (Enjoy the little things) (14706 Points)
Replied 26 August 2016

Dear user,

it means don't deposit it in single day.

anonymous (student) (750 Points)
Replied 26 August 2016

deposit every week small amounts like 30-40k and that too in multiple accounts... also you do not have any reason to worry too since it is a gift...!!

Hot Star (Manager) (31 Points)
Replied 26 August 2016

Thank you everyone for your valuable suggestions.

I have one doubt here. Is a gift tax free for any amount or there is a cap on amount to be tax free. Thanks in advance.

Ankit Khandelwal (Senior Manager Finance) (29 Points)
Replied 27 August 2016

From your question it is a "Gift" to you. "Gift Tax" has exemptions. Money gifted by Parents, Siblings, In-laws or even by wife are "Totally" exempted from Taxes.

To do:-

Proper Gift deed must be prepared and duly authenticated.

Make sure the money you want to deposit is in the form of Cheque or DD.

Said gift amount must be disclosed in income tax return.

Thanks

Ankit Khandelwal

ANKUR AJMERA (EXCISE & ACCOUNTS MANAGER) (22 Points)
Replied 27 August 2016

Please Contact On 8097758199/- or @ Ankurajmera1989 @ gmail.com

D.C AHUJA (CONSULTANT) (120 Points)
Replied 28 August 2016

If you recieved the gift from blood relations these are tax free upto any amount but if from outsiders then this is taxable income and u have to file return for amount beyond exemption limit other wise even no need to file return

Sumit Kumar Yadav (Student CA Final ) (328 Points)
Replied 07 October 2016

Dear User,

The gift received from relatives are exempt. Therefore, if you have received the gift of Rs.400000 in cash from your relatives, then it will be exempt. Otherwise it will be taxable and you need to pay tax upon it & file ITR.

Apart from this, Deposit the cash in your S/B in the lot not exceeding Rs.50000/- per day.