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Amount given to father during an emergency

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2016 Dear Sir,

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 interest 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?

Please advice. .

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 May 2016 This can be treated as interest free loan given to father. In case of scrutiny show both pass books and get a letter from your father to this effect. No tax or interest or penalty payable. This transaction need not be shown in ITR.

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