It query for gift transaction and bank sb interest

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This query is : Resolved

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This discussion addresses concerns about an Income Tax query related to a large cash gift and savings bank interest. It clarifies that the Income Tax Act may accept a large gift value even if declared income is lower, especially if the funds were transferred online and past savings were used. It also explains that savings bank interest might not always appear on AIS/TIS, advising to declare it based on bank statements or interest certificates. Executing a Gift Deed is recommended for documentation.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

19 November 2021 Sir,
It assess taxable income rs:6 lacs show in it returns in f.y.20-21
1.cash gift to son rs:10 lacs pay on online mode
2.assess sb bank accounts running.
Question:
1.income declared low and cash gift value large accepted in it act
2.bank sb accounts not showing in AIS and TIS.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

19 November 2021 1. Unless the cash deposits to bank accounts reported by bank, the query may not be raised.
2. No need to worry, if the same have been declared it in ITR, and profile

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PARAS CHHAJED

PARAS CHHAJED

(Expert)

20 November 2021 I have gone through various AIS and found that some banks have reported interest paid on Saving Accounts. Just declare income based on interest certificate from your banker or take details from your bank pass book or statement of account from bank.

Since the fund transferred is online it may bnot be reported by bankers in SFT. One does have past savings as well which could have been utilised in making a gift more than the current income.

It is advisable to execute a Gift Deed, or an affidavit may be sworn by the donor for future reference.

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