Demonetization of saved Notes of 500 & 1000rs Denominations

This query is : Resolved

pranjit dutta (Querist)
Follow

10 November 2016 Dear Concerned , My mom who is a housewife, and looks after the Rent (landlady) matters of our Residential Propety has a cash amount of Approx 9.5 lacs of 500/1000rs Denominations saved over a period of 4-5 years. Currently she is a senior citizen and has a bank account as well with valid PAN details made prior 2years . However she has never filed income tax returns. Now when Modi Govt has done demonetization , my Mom is liable to deposit the amount in her Bank Account. However as the amount is More than 2.5 lacs and also not disclosed in the IT return (not filed) , she is likely to attract huge penalty chages . Kindly suggest a suitable solution to the issue.

CS Peer mehboob

CS Peer mehboob (Expert)
Follow

10 November 2016 Mr.Pranjit, First of all, hire some CA to file your mother's belated return of previous years. If your mother is housewife, then in a year no tax will be payable, if rent income is recieved upto Rs.2.5 lac. per year. You can show after filing of belated return that you have no tax liability during those years and you have filed your belated return. However, you will have to pay penalty on filing of belated return and interest on taxable amount. You may deposit your money after filing of return. Hence, You will not attract huge penalty.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok