ITR filing obligation due to savings deposit

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Akshit Jain (Querist)
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10 January 2025 If a parent gifts 60 lac via cheque to his adult son and the son deposits the cheque in his savings bank account, does the deposit trigger an ITR filing obligation for the recipient under *Section 139 (1) and rules 12 AB of the Income Tax Act, 1961.? The son has no taxable income.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 January 2025 Yes.
Whether gift deed prepared?

Akshit Jain

Akshit Jain (Querist)
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11 January 2025 Gift deed is not prepared. Does it matter whether gift geed is prepared or not?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 January 2025 Gift deed not required evidence of cheque transfer is enough in case of any query.
Gift to relatives is exempt from tax.

Akshit Jain

Akshit Jain (Querist)
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11 January 2025 Sir, the question is not about exemption of tax. The question is - does the deposit trigger an ITR filing obligation for the recipient under *Section 139 (1) and rules 12 AB of the Income Tax Act, 1961.? The son has no taxable income.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 January 2025 It's exempt income no need to file ITR.

Akshit Jain

Akshit Jain (Querist)
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11 January 2025 Again, the query pertains to Section 139(1)...Rule 12AB. See - https://taxguru.in/income-tax/rule-12ab-conditions-furnishing-return-income-specified-persons.html
5. if deposit in one or more savings bank account, in aggregate, is rupees fifty lakh or more during the previous year:

Does this apply in the situation described?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 January 2025 Yes, in case of deposit is 50 lacs or more.
Show it in ITR as gift from relatives under exempt income schedule.

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Akshit Jain

Akshit Jain (Querist)
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11 January 2025 Does it imply there is no need to file ITR if the 60 lac cheque is deposited in the son's current account instead of the savings account because the filing threshold for the current account is a deposit of over 1 crore?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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12 January 2025 if you receive money in your current account, you need to ensure it is properly accounted for. Otherwise, very good chance that you will receive a GST notice as GST department is monitoring deposits in business accounts and issuing notices. so I would suggest that you file the tax return and show this amount as capital.

Akshit Jain

Akshit Jain (Querist)
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12 January 2025 It is a personal current account, not a business current account. Therefore, there is no GST information associated with the account. FYI - No law or RBI guideline bars a personal current account and some Indian banks though not all happily open a personal current account. As mentioned in the query, the deposit is by cheque from parent (a regular tax-payer and ITR filer) to son, so it is properly accounted for. The question is, does the deposit trigger an ITR filing requirement?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 January 2025 ITR filing not required in such a case.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 January 2025 keep a track of the notices the GST department is issuing these days. their filters would still end up catching these transactions.

Akshit Jain

Akshit Jain (Querist)
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13 January 2025 When the personal current account is not seeded with any GST information such as GSTIN or Udyog Adhar because it is a personal current account, not a business current account, why would the GST department flag a personal payment from parent to son? Will they issue a GST notice to the son even though he owns no business merely because he received some money from his parent in his personal current account by cheque? That doesn't make any sense.