Western union transfer leading to income tax scrutiny

Tax queries 3242 views 6 replies

vikrant

Others

26 Points Joined October 2013

Gentlemen/Ladies

Bear with me while i explain the query. I was employed in libya forom 2006-2010. I sent money using western union. which was received as cash in India. Since i coudnt send to myself therefore i sent it on my parents and on my wifes name. In addition, due to the restrictions on cash sent through western union (10 transactions allowed in a financial year) in libya, i used my colleagues passport's to transfer money through western union to my parents and wife (western union receiving limit-10 transactions per year). This sum was deposited as cash deposit in my N.R.O account back in India when i came back for my annual leave to india. I am being scrutinized by the income tax department to explain the cash deposits in my bank account. Any help in resolving this conundrum would be highly appreciated.

Vikrant

p.s (libya did not have provision to transfer money through rtgs/wire transfer in those days due to financial embargo from the USA/Europe)

Replies (6)

RUPESH CHOUDHURY

Student

484 Points Joined May 2008

Dear Vikrant Ji

Could please tell the exact facts ??means have u received any letter from the deptt??if yes then under what section and what are the main points in those letters??

Regards

vikrant

Others

26 Points Joined October 2013

Originally posted by : RUPESH CHOUDHURY

Hey Rupesh

the letter i have received from the income tax is on -non filing of income tax returns

the performa has codes on it

1- tds 195 (two queries-other sums section 195)

2-AIR 001 (Two queries on cash deposits exceeding two lakhs)

3- CIB-184-(cash deposit of 50000 or more)

4- CIB- 403 (fd of over 2 lakh)

5- TDS 94a

Hope this helps

RUPESH CHOUDHURY

Student

484 Points Joined May 2008

Dear Vikrant Ji

In reply to that letter u can explain ur stand to the deptt. that u have actually transferred the money thru wire and no physical cash was involved..

But please ensure that you were not required as per the Indian Tax laws to file return of Income with the Indian Tax Authorities for the relevant period(s)or which u have received the notice.This again depends upon ur residency status in India during the particular period..

For finding the residency status u can meet a tax consultant or otherwise also u can give the required details..

Regards

vikrant

Others

26 Points Joined October 2013

hey rupesh

the western union transfer was cash transfer .since, western union from libya does not permit moeny transfer directly to the acount..my parents pooed the cash till i came back and i deposited it in my N.R.O account..since n.r.e account does not accept funds from western union

RUPESH CHOUDHURY

Student

484 Points Joined May 2008

Dear Vikrant ji

Ok I got the point..

But still my above points are pertinent ..

And if u can share the letter here, after removing confidential info , then I think it can be more useful..

Regards

Imran

Executive

21 Points Joined February 2014

Hi I Need Some help from you urgently.. I received a notice from Income tax Dept which i am attaching here for your reference and response to be given within 10 days. As they mentioned in the Notice...

Case1: 50,000/- and above deposited in my account during 2009.. Fact: No amount above or equals 50K is deposited in my account. Soltuion: can i select transaction doesnot relate to me

Case2: AY 2010-11, AY 2011-12, AY 2012-13 IT returns not filing.. Facts: 1) 2010 - 2011 income was not crossing IT limit. 2) 2011-2012 income also not crossing IT limit, so IT return didn't filed. 3) From Jan - 2012 i started working in China and getting salary in China from Feb - 12 ...and transferring to SBI NRE Account.. Some of the Other Money deposited in HDFC ..but that doest not reach the max limit . Since i am in China, i cannot sign the document and send to them..On my behalf can anybody send ?..My Wife..She is in India. Please reply as early as possible.

Reply me to imran.9.chem @ gmail.com ..

Thanks & Regards, Imran