Depositing relative money in bank account

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Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2013 We 3 brothers and uncles and our few relatives come together for remake of our old house at village by demolishing it. we have decided to remake it in 35 lakhs (appx). now my question is our family appointed me to keep all monies in my bank account..share is 3,00,000/- each. is it safe to keep such money in my account ? do i have to face any taxtion duty or liability or any procedure thereof ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

10 December 2013 The ans is no as there is no income as per def of "income" under sec 2 of income tax act.

Ganeshbabu K

Ganeshbabu K (Expert)

10 December 2013 it will be okay,,but make sure single credit/debit in day should not exceeds 10 lakhs

Ajay Mishra

Ajay Mishra (Expert)

10 December 2013 Yes, you will be liable to pay taxes on interest that you will received on such amount.

Ajay Mishra

Ajay Mishra (Expert)

10 December 2013 Kindly confirm both experts, if i am wrong.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

10 December 2013 Int on such amount deposited is taxable under income from other source however the principal amount is not at all taxable.

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Ajay Mishra

Ajay Mishra (Expert)

10 December 2013 Then Tushar Sir such person will be liable to tax tax or not.

Now your answer is correct.

Ganeshbabu K

Ganeshbabu K (Expert)

10 December 2013 ofcourse interest earned in savings bank will be taxable under head other sources and can get deduction upto 10000 u/s 80tta
.
.
however it is personal transaction and if single credit/debits not exceeds 10 lakhs it department will not aware of this and it will be fine
.
.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

10 December 2013 yes the person ultimately earning the int on collective deposit shall be liable to tax on int portion.

In case if such int do not exceed rs 2,00,000 in aggregate and other income of assessee earning int income is below rs2,00,000 then even this int will not be taxed provided the total income from deposit is not more then 10,000 else tds will be deducted and later refund has to be claimed via filling itr resp.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

10 December 2013 My ans was based on assumption that he invests it in FD's but as ganesh babu said if in deposited only in savings a/c then he is correct.

Ajay Mishra

Ajay Mishra (Expert)

10 December 2013 Now come a correct answer from both experts.....

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Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2013 yes the fund will be in saving account and will be paid to contractor as per progressive work.

Ajay Mishra

Ajay Mishra (Expert)

10 December 2013 Mr. Author.....

Come to the points on query, the experts has given you a good response on you.

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