Cash income

Tax queries 300 views 6 replies

RAMESH

STUDENT

106 Points Posted on 19 February 2016

Suppose Ram, 19 year old male person have made investment of RS 10 lac in Residential flat in FY-2014-15 and the registry of the flat has also been done in his name in the same year..

The investment of rs 10 lac was made through a/c payee cheque..

Ram didnot have any bank balance and cash balance in his balance sheet prior to the investment because he has just now got pan card.. In the year 2014-15 he got cash money from some where (CASH INCOME/UNDISCLOSED INCOME) and deposited the same into the bank and made payment of the flat.

Now Ram is ready to file his income tax return and also ready to pay tax if any for the source of income..

So now what should Ram do sothat the investment of rs 10lac can be shown in actual and also what the source of income should be shown sothat he doesn't fall into problem for income tax purpose..Ram doesn't have any sufficient proof for that 10 lac rupees ..

so what Ram should do now to file income tax return..

ASSUME: Ram can't take any help of his parent's/any one's Income tax file for cash income / gift treatment..

Replies (6)

Shivani Mittal

Practice

425 Points Posted on 19 February 2016

What is the actual source of income ?

RAMESH

STUDENT

106 Points Posted on 19 February 2016

Source is not known to him or you can say he or his father had black money..

Shivani Mittal

Practice

425 Points Posted on 19 February 2016

Opening balance of cash can be shown say Rs. 100,000 or 150,000. Rest can be shown as loans taken.

RAMESH

STUDENT

106 Points Posted on 19 February 2016

so to protect the investment , Ram is ready to pay tax and disclose his income of whatever nature ..

so suggest How Ram should show his income and investment?

Shivani Mittal

Practice

425 Points Posted on 19 February 2016

As mentioned earlier, show some opening cash balance, file this year's ITR by showing income, pay tax accordingly and take balance as loans taken which is subsequently invested in property.