INCOME FROM OTHER SOURCE, CREDIT IN SAVING ACCOUNT

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A small business owner received £22 lakh from a property sale, credited to their savings account in instalments via UPI and then withdrawn as cash. They are concerned about potential income tax notices and queries, having already used half the funds for tuition and investments. While capital gains tax is applicable, suggestions include utilising Sections 54/54EC for tax savings and declaring the transaction in their Income Tax Return (ITR).

Arnab Chatterjee

Arnab Chatterjee (Querist)
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09 July 2024 SUPPOSE SOMEONE HAVE RECEIVED 22 LAKH IN A SINGLE FINANCIAL YEAR FROM SALE OF PROPERTY, AND VIA UPI THE ENTIRE AMOUNT HAS CREDIT HIS/HER SAVING BANK ACCOUNT IN A SINGLE F.Y. BY 12 TIMES INSTALLEMENT, AND WITHDRAWL AS CASH IMEADIATE ABD INSTANT FROM THERE.

NOW QUESTION IS THAT, HE/SHE IS A SMALL BUSINESS PERSON, CAN HE/SHE GET ANY INCOME TAX NOTICE OR FALL UNDER ANY QUESRIES...?? ACTUALLY HALF OF THIS AMOUNT HE/SHE UTILISED ALREADY FOR CHILDREN TUTION PURPOSE AND KEEP SOME INVESTMENT.

NOW HOW TO AVOID TAX. PLEASE GIVE ME ANY SUGGESTION.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 July 2024 He is liable to pay Capital Gains over the sale of property. He can save the tax by investment u/s. 54/F, 54EC etc. He is liable to declare the transaction in ITR of relevant assessment year.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 August 2024 Good Luck.

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