Avoid unecessary IT Dept scrutiny on money transfer between accounts.

Hi All,

 

One of my friend have some money(savings from salary) in his bank account of bank1. He has opened another savings account in his name in bank2. He wants to transfer half of the money to bank2 via cheques.

Online transfer is not possible as netbanking is disabled, cheque is the only way.

Currently, he's transferring 1.5 lakh once a month. He thinks if he transfer large amount then it might come under lens of IT Dept and they might scrutinize it. All the money is his savings from years of working in private job, so no issues there. But he wants to avoid unnecessary hassle.

Is there going to be an issue if he transfers large sum of money like 5 or 10 lakhs per month?

 

Thanks in advance!

Replies (6)
Quick Summary
A user is concerned about their friend transferring large sums of money (via cheque) between their own savings accounts at different banks, fearing IT department scrutiny. The consensus is that simply transferring personal savings between one's own accounts is not an issue for the Income Tax Department, as it's not considered income. However, to be extra cautious and avoid any potential hassle, splitting larger transfers into smaller amounts over several days is suggested.

No issue

No restrictions under Income Tax

you can transfer any amount
Mere transfer between the accounts can't be considered as income.

Income Tax Dept send notices for the income escaped assessment and not on all every credit to bank account
You Can transfer any amount.
Not issue
Split the 5 or 10lacs instead of single transfer

@ Eswar Reddy S - So, say, if he wants to transfer 20 Lakh to bank2 then can he safely transfer 5 lakh per month to avoid any IT dept scrutiny?

Use multiple days for multiple payments like 50000/- once in two days

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