03 October 2009
One of my Claint and his wife executing works contract.But Wife and Hunband is operating one bank acccount.Wife's Business Cheques are also taking husbands name and depositing the same in husband bank account.But wife and husband TDS certificates are received their names with PAN. But all the Bank transctions are in husband bank account. Is there any problem with Income Tax department all the transctions are in one account.Kindly clarify.Thanking you
03 October 2009
In such case Husband has to maintain a current account of wife in his books of accounts. All the transactions pertaining to the business of his wife should be debited/credited in the account of wife. Similarly in the wife's account such entries should be recorded. There should be no problem in my opinion from the Income Tax Department. At most AO will try to cover up this transaction u/s. 269SS & 269T. Give the suitable reply no penalty will be levied.
CAclubindia
