Hi All,
Requesting for advise on below, your help much appreciated.
On 2018, my father who is a senior citizen (73 years old) sold one of our property (land) for 14 lakhs, back in our village in Kerala, and he somehow he was not aware to file tax on the amount received. Half of the payment (7 lakhs) was paid into his bank account (Joint account under father and mother's name) beginning of 2018 and remaining half (7 lakhs) was paid by end of 2018, by the person who bought our property. The amount mentioned in registered paper is 14 lakhs land has been sold. And that money was used to pay my fees for immigration and for my marriage that happened in 2019. The property was bought 15 years ago by my father for 1.20 lakhs.
Last day we received a message in his mobile from income tax stating that a transaction of 12 lakhs was found in the year of 2018-2019 from the bank account, so asking if we have filed tax and to show source of income? I read online that we have to pay 20 % as tax, what is the proper way to do it? is he exempt from tax as being a senior citizen? He owns a small stationary shop in our village where he earns around 15-20k per month. He is stubborn that way need to work this age. But need suggestion or help regarding this matter, what initial steps and necessary action should we take as we have little knowledge in this.
Help much appreciated.
Thanks,
Vinu
CAclubindia
