Income tax enquiry.

Tax queries 396 views 4 replies

Around 3-4 years back, A daughter gave some money to her old mother and the mother put that money in to a fixed deposit(FD). The parents are fairly poor and do not have any sizeable income of their own. There was no gift / agreement as such. The father is bedridden and can hardly move.

Well, That FD earned some interest, around 1Lakh. Now the mother did not know / bother about Income tax filing procedure / requirement. Since, the interest income was well within the income tax thresholds of 3L for senior citizens, the daughter also did not think about it. IT deptt has seemingly sent an enquiry to the mother for the year 13-14.

Not sure what is the nature of the enquiry. The mother is in a distant town and can't read that well.

What next ? Is it some routine situation and what will constitute a satisfactory response to the IT deptt ?

That money has fetched some interest in the later years as well and the return was not filed. How to avoid future problems ?

Regards

Replies (4)

"Is it some routine situation and what will constitute a satisfactory response to the IT deptt ?"

Its the practise of department to bring new tax payers into the net , based on AIR, CAS reports etc.

As the bank has deducted TDS, the department requires its explanation whether its taxable or not? So, first, you will have to reply to the concerned ITO, stating all these facts and clarifying that because of total income from all the sources was within the basic exemption limit the ITR was not filled.

Secondly, submit form 15H to bank (to be submitted each year in the beginning of financial year) for non-deduction of TDS (provided tax liability is nil).

Reply online if option is available else give in writing that income was below limit. 

for interest income below 50K per year department least bother,  verify the principal and interest amount of the specified year, and confirm that source is tax paid during the year of gift, 

this query would be upfront during the compliance,  

Dear satya ,

 

Dont worry as its normal practise to send letters as its get genrated automatically from system .

Further u should keep your point infront of AO as your income is less than the taxable limit 

Hope your query is resolved 

Originally posted by : Satya

Around 3-4 years back, A daughter gave some money to her old mother and the mother put that money in to a fixed deposit(FD). The parents are fairly poor and do not have any sizeable income of their own. There was no gift / agreement as such. The father is bedridden and can hardly move.

Well, That FD earned some interest, around 1Lakh. Now the mother did not know / bother about Income tax filing procedure / requirement. Since, the interest income was well within the income tax thresholds of 3L for senior citizens, the daughter also did not think about it. IT deptt has seemingly sent an enquiry to the mother for the year 13-14.

Not sure what is the nature of the enquiry. The mother is in a distant town and can't read that well.

What next ? Is it some routine situation and what will constitute a satisfactory response to the IT deptt ?

That money has fetched some interest in the later years as well and the return was not filed. How to avoid future problems ?

Regards

 


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