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Income tax notice for bank transaction

Karthik (SA) (24 Points)

24 April 2012

My Father had done some transaction during my marriage. He has depositted the amount and withdrow whenever necessary. So this transaction amounted to Rs. 13 Lakhs. He is normally a non-tax payer. He is dependent of me. He has received a notice from the IT dept to pay tax for the same amount. This 13 Lakhs also includes the amount (4 Lakhs) that my father-in-law has gifted me for my marriage. What can I do to solve this issue. Please help

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3 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 25 April 2012

Was the amount of 13lacs being used from his own income, or was it that the amount was being deposited by you in his account and then used the amt of 13lacs, as you said he is dependent on you?

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 25 April 2012

Dear, Make out a reply chart of the income source & prove this amount gift or thru you is laready taxed.The reply must be submitted to ITO/Assesing officer on due date.Abnormal entries in Bank are monitered by Income Tax deptt & notices are aroutine affair.

Murtaza I Bhagat (Tax & Finance Consultant) (10523 Points)
Replied 25 April 2012

yes, 13 Lacs is big amount for non taxpayer or below taxable income

you need to prepare P&L & BS for the same or if its already prepared then submit to AO for clarification because all the transaction need to be clarify incase of doing in Saving A/c

bifurcate all the big amount received while your marriage as a gift and write a letter to AO for considered as non taxable part

you must need to visit your Ward A.O and explaning everything about transaction but first you need to prepare first for explanation