Non filing of itr & cash deposit more than 200000/-

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2017 Sir, one of my friend received a notice for non filing of income tax return for AY 2015-16 & Also the notice demanded explanation for cash deposit of more than rs. 200000/- for same assessment year. Actually my friends father died during FY 2014-15 & before which he made FDR of certain amount at co-operative bank. after death of father friend encashed the fdr from co operative bank.. & the bank provided the amount to him in cash. and he deposited the cash into his saving bank account in the same financial year 2014-15. As my friend was dependent on his father... he does not have any income.... i want to know what reason he will provide for non filing of Income tax return ?? Also what will be nature of income... he got due to fdr encashment... i mean will it be treated as gift...or something else.. as the department asking for source of cash deposit???

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 May 2017 Reply to the notice stating the facts stated above.
1 No need to file return as the person is not earning any income and dependent on father.
2 The FD encashed will be treated as inherited income not taxable.

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