Around 3-4 years back, A daughter gave some money to her old mother and the mother put that money in to a fixed deposit(FD). The parents are fairly poor and do not have any sizeable income of their own. There was no gift / agreement as such. The father is bedridden and can hardly move.
Well, That FD earned some interest, around 1Lakh. Now the mother did not know / bother about Income tax filing procedure / requirement. Since, the interest income was well within the income tax thresholds of 3L for senior citizens, the daughter also did not think about it. IT deptt has seemingly sent an enquiry to the mother for the year 13-14.
Not sure what is the nature of the enquiry. The mother is in a distant town and can't read that well.
What next ? Is it some routine situation and what will constitute a satisfactory response to the IT deptt ?
That money has fetched some interest in the later years as well and the return was not filed. How to avoid future problems ?
Regards
CAclubindia
