Save Rs 499 on a 2-Year Ad-Free Pro Membership. Subscribe Now!

FLAGGING OF PAN NUMBER RECEIPT OF SMS

Tax planning 240 views 1 replies

Rangee suresh kumar Singh

Consultant

55 Points Posted on 17 September 2020

Dear Experts,

My friend whose annual Income is less than Rs.3.00 Lakh has sent his son for studies abroad. He has sent by SBI transactions an amount of Rs.15.00 Lakhs during the year 2018-19. This amount is sent out his savings and previously held Fixed deposits and also by borrowing hand loan from his relatives. He has signed and submitted part D of Form 15CA to the Bank along with INVOICE of tuition fees of his son. Now he has received SMS to this registered Mobile Number stating his PAN number has been flagged and he has directed to file ITR for 18-19 before 30-9-2020. Please advise as to what he has to do next? whether he is liable to pay tax on remittances even though he has not earned that money during the periled of 2018-19? Should include the money sent has his income during the year of assessment?

R.S.K.Singh

Advocate

Replies (1)

CA Raj Doshi

Practising CA

8954 Points Posted on 17 September 2020

I would suggest you to file the return even though there wouldn't be any major income. This is to reduce chances of scrutiny later on. There is no tax on remittances. They just you want to file return so that there is some data to collaborate your educational loan. There is no flagging,its just reminder that they have these details of a high value transaction and ITR isnt filed that's why.