Cash received by an individual
This query is : Resolved
30 March 2012
Hi,
This is relating to my Income tax liability which I will be calculating for the 1st time. My father had an operation so we needed money which I took from my 2nd cousin (not a relative as per sec 56)rs.1,25,000 (bank transfer)and from a friend rs.99,000(money gram-cash). However, the operation is done by March'2012 3rd week and i don't need that money so have to return it back but it can't be returned in one day, will at least take few days. So I wanted to know whether this cash/bank transfered amount will be taxable to me u/s 56. Also, I don't have my father's mediclaim policy, so can I take exemption of sec80D??
Please help as this is no income, just a need which arouse and now I will have to return back the amount. If taxable, then can I do anything before 31st march so as not to make it taxable?
Thanks in advance.
Regards,
Saoli Chakraborty.
This is relating to my Income tax liability which I will be calculating for the 1st time. My father had an operation so we needed money which I took from my 2nd cousin (not a relative as per sec 56)rs.1,25,000 (bank transfer)and from a friend rs.99,000(money gram-cash). However, the operation is done by March'2012 3rd week and i don't need that money so have to return it back but it can't be returned in one day, will at least take few days. So I wanted to know whether this cash/bank transfered amount will be taxable to me u/s 56. Also, I don't have my father's mediclaim policy, so can I take exemption of sec80D??
Please help as this is no income, just a need which arouse and now I will have to return back the amount. If taxable, then can I do anything before 31st march so as not to make it taxable?
Thanks in advance.
Regards,
Saoli Chakraborty.
30 March 2012
Since the sum of money received by your are NOT gifts (they are in the nature of loan), they are not taxable u/s 56(2)(vii).
You cannot get deduction u/s 80D since deduction u/s 80D is available only for INSURANCE PREMIUM and NOT for expenditure.
You cannot get deduction u/s 80D since deduction u/s 80D is available only for INSURANCE PREMIUM and NOT for expenditure.
30 March 2012
Hi,
Thanks a lot for your reply. I was wondering that it was in the nature of loan, but I had this query that do i need to show anything as loan because its informal and I don't have any formal documents for the loan.
As I have never filled in ITR (was always into audits)and this would be for the first time, I was just making sure.
Thanks a lot for your reply. I was wondering that it was in the nature of loan, but I had this query that do i need to show anything as loan because its informal and I don't have any formal documents for the loan.
As I have never filled in ITR (was always into audits)and this would be for the first time, I was just making sure.
30 March 2012
No you do not need to show in the ITR.
30 March 2012
ok. thanks a lot for your promt reply.
31 March 2012
You are welcome. You should use the thanks button to convey your thanks.
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