Cash deposit of 10 lacs

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A client's son withdrew Rs 10 lacs in cash from his deceased father's matured Fixed Deposit in FY 2021-22 and deposited it into his own bank account. This cash deposit appears on his AIS report but isn't his income. The advice is to report this transaction in the Income Tax Return (ITR) as exempt income and keep reconciliation documents ready, as the return might be selected for scrutiny.

DIVYESH JAIN

DIVYESH JAIN (Querist)

24 July 2022 Dear Sir,

One of my client's father expired in FY 2021-22 and his father's bank fd matured in the same year. Hence his son withdrew the amount from bank in cash and deposited this cash in his own bank account.

Now his son's AIS report shows a Cash deposit of Rs. 10 lacs which is not his income but only the amount withdrawn from his father's account. His mother is also no more.

What should be done in this case. Can this amount be not shown while filing income tax return.

Please help me in this matter.

Regards,
Divyesh Jain

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 July 2022 Cash withdrawal after expiry of the father amounts to withdrawal from his own account (legal heir) and deposit in his other account .
No problem in such a case.
Report it in ITR.

DIVYESH JAIN

DIVYESH JAIN (Querist)

24 July 2022 Ok Sir, Thanks for your reply.

CA PARTH SHAH

CA PARTH SHAH (Expert)

06 August 2022 Keep the reconcilation ready with total cash withdrwan from Father Account and total cash deposit in the bank account.
THere are chances of ITR of client getting selected for scrutiny. It ia advisable to show the cash deposited as exemot income in ITR.

DIVYESH JAIN

DIVYESH JAIN (Querist)

07 August 2022 Yes, will take care about it. Thanks for your advice.

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