Such transactions will charge any tax ?
This query is : Resolved
21 August 2011
Sir, my friend is having a sole trade business( Furniture). he has bank a/c's in 3 banks viz, IOB, ICICI & HDFC.
On Day 1 he deposited rs. 10,000 in IOB.
On Day 2 he withdrawn the same amount from IOB and deposited into ICICI on same day.
And the same day he drawn a cheque from ICICI to HDFC bank for the same amount.
He done so because to increase his No. of transactions in order to get some banking benefits.
Now my doubt is " Does these transactions will increase his tax liability" ( i mean Whether these transactions reflects the sales tax or income tax )? Does he liable to pay any increased amount of tax due to these transactions? Is he is doing right thing or he can face any problems in future for doing so... plzzzz help me regarding this.
On Day 1 he deposited rs. 10,000 in IOB.
On Day 2 he withdrawn the same amount from IOB and deposited into ICICI on same day.
And the same day he drawn a cheque from ICICI to HDFC bank for the same amount.
He done so because to increase his No. of transactions in order to get some banking benefits.
Now my doubt is " Does these transactions will increase his tax liability" ( i mean Whether these transactions reflects the sales tax or income tax )? Does he liable to pay any increased amount of tax due to these transactions? Is he is doing right thing or he can face any problems in future for doing so... plzzzz help me regarding this.
21 August 2011
A problem arises when you cannot identify the source of the money. In your case, if you can convince the assessing officer about the same money being transfered then no problem.
Maximum he can charge Income Tax on 10000 only once.
Maximum he can charge Income Tax on 10000 only once.
21 August 2011
There is nothing wrong in transfer of money from one bank account to another.
There is no tax liability on money deposit and withdrawl.
Further depositing and transferring from one bank account to another doesn't help in getting financial assistance from banking. As it is very clearly visible from the bank st.
There is no tax liability on money deposit and withdrawl.
Further depositing and transferring from one bank account to another doesn't help in getting financial assistance from banking. As it is very clearly visible from the bank st.
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