This is a follow up from a previous query. A female senior citizen was given some money by her daughter which was put in FD and some interest (around 1L) was earned, the income thus was well below the total exempt income 3L for senior citizens. There was no Gift deed or Loan agreement as such. A return was not filed next year and IT deptt. has sent a notice asking for response on e-filing website. There are 2 entries under the compliance tab on e-filing -
CIB-183 Time Deposit of Rs 100000 or more.
TDS-194A - TDS return - other interest (194A)
Can someone verify my understanding - Would it be the correct to specify the explanation for 1st entry as -
Self-Investment / Expenditure is out of gifts / loans from others.
and for the TDS return the explanation should be - Self-Income from transaction is below taxable limit.
However, What should be the reason for Not filing the Return ? Whether to say "No Taxable Income" OR select "others" and write in comments the income was below taxable limit.
Also, What more information should be added to avoid further questioning ? What info regarding source of funds ? Do we need to provide the daughters accounts etc OR just a statement should be fine.
Regards
CAclubindia
