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Car purchased through cash transaction

1263 views 3 replies

shailender bali

none

47 Points Posted on 06 April 2010

Hello,

One of my friends has bought a car in cash (full purchase price paid in Cash). Though he furnished his PAN no. to the car dealer , the car dealer has mentioned Form 60 instead of the PAN no. in the invoice issued by him.

Will that lead to any complexities later on?

Thanks for taking time out to reply

regards
shailender bali

Replies (3)

Deepesh Jain

C.A (May 11 Batch)

104 Points Posted on 06 April 2010

No but incometax query abt the source of cash is possiblity

Guest

Get ready for the source of such cash and see whether income reported by the assessee in the return are in commensuration with the value of car purchased. If income is too high as compared to the value of car purchased then there are fair chances of escaping from scrutiny. However needless to say, you should be prepared for the consequences.

NIDHI PARKASH

Suptdt.

41 Points Posted on 06 April 2010

Originally posted by : shailender bali
	No problem because of genuine source of income: however, it is better, if you have any doubt, get it corected from the concerned dealer and authority. Hello, One of my friends has bought a car in cash (full purchase price paid in Cash). Though he furnished his PAN no. to the car dealer , the car dealer has mentioned Form 60 instead of the PAN no. in the invoice issued by him. Will that lead to any complexities later on? Thanks for taking time out to reply regards shailender bali