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Income tax - cash deposited above 10 lakhs

Tax queries 904 views 3 replies

My Client is a NRI since last 20 years and have not filed the Income Tax Returns in India. He use to send money to his wife in India via western union and others, wife in turn use to deposit the same in Bank.

The problem now is that cash deposited in bank has exceeded the limit of cash to be deposited in Savings bank account so the Income tax dept has send the notice that Income Tax Returns of wife has not been filed.

Wife doesnt have any income thats why she had not filed the return.

Can any 1 guide me how to approach this matter!!!

Replies (3)

Your client's wife recieved money from her husband. This is an Income and she is accountable for the same. Contact a Chartered Accountant and he/she will be able guide you for filing IT returns. It is mandatory that she files a IT returns on or before the due date. 

Jayam Ramesh K C

She will have to show the transaction trails from her husband sending money to western union account and later she depositing the same in her saving account. If she can produce these transactions, the IT dept will not make this cash deposit her taxable income.

Ok, thanks jayesh and mihir


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