CASH DEPOSIT IN SAVINGS ACCOUNT

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A pensioner sold a property for cash and deposited a significant sum into her savings account. The user is unsure how to report this cash deposit in the Income Tax Return (ITR), especially since it wasn't declared and the property sale itself was a loss-making transaction. Advice suggests that if the cash deposit is less than ₹10 lakhs, banks may not report it to the Income Tax department, and it might not appear in Form 26AS. If it doesn't show in 26AS, it's generally advised not to declare it to avoid complications, particularly as the property transaction resulted in a loss.

ashish marwah

ashish marwah (Querist)
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10 August 2021 Hi. I am writing this on behalf of my mother. My mother is a pensioner and she purchased one property in the year 2011 without my knowledge. That property was based upon power of attorney and full cash payment 11.50 lacs approx. Frankly speaking it was some fraudster who cheated her and sold some very bad property in very bad location in Delhi at very high price. Some how i came to know later and we could not sold the property for 10 years. Now recently again i came to know that the property was sold without my knowledge in F.Y 20-21.My mother sold the property in cash @ 8 lacs . and deposited the 6.86 lacs in her savings account . I have already filed the ITR on behalf of my mother this year but did not show the cash deposit. What should I do in this case. Should I file revised ITR and pay the tax by the way its a loss making transaction and I cannot show the property transaction. What source should I mention in the ITR. She has been filling the ITR since 6 to 7 years .Please help

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 August 2021 Cash deposit less than 10 lacs not reported to income tax by the bank.
Check 26 AS it's not reported leve it.
It's a loss transaction no need to report in ITR.

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ashish marwah

ashish marwah (Querist)
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10 August 2021 Sir Thanks a lot . The cash was deposited this year in jan 2021 . Will it show in 26as. Can the income tax dept ask the source after 2-3 years.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 August 2021 Yes, it will show in 26AS. If it's not showing then income tax will not ask for it in future.

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ashish marwah

ashish marwah (Querist)
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10 August 2021 Thanks a lot sir . I appreciate it

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