Notice from it department

Efiling 678 views 6 replies

Renjith Sreekumar

29 Points Joined January 2016

I got the following letter from IT Department which is attached along. They ask for my response via e-filing. I am a self employed person with an annul income less than 2 lakhs a year. As per the notice from IT department i did spend 2 lakhs on credit card bills and 10 lakhs of cash transactions in my a account in a month.

1. I did help my friend in booking flight and hotel to USA using my credit card and which accounts to 2 lakh.

2. For my wedding expenses i took a loan from my parents and relatives and hence high cash transcaiton of 10 lakhs in a month may be as they say.

what should i do now. i am confused and worried. i am a man who try hard to meet my monthly bills.

Replies (6)

Guest

List of High Value Financial Transactions reported to Income Tax Dept

If cash aggregating to Rs 10 Lakh p.a. is deposited in your Bank Savings Account.
If you make Credit Card payments of more than Rs 2 Lakh p.a.
If you buy mutual fund units worth more than Rs 2 Lakh.
If you buy shares worth more than Rs 1 Lakh.
If you invest more than Rs 1 Lakh in Gold ETFs.
If you buy or sell an immovable property worth more than Rs 30 Lakh.
If you invest Rs 5 Lakh or more in RBI bonds in a year.
f you invest more than Rs 5 Lakh in debenture or Bonds issued by any company.
cash deposit in bank between 8 november 2016 to 30 december 2016

IT IS ADVISE TO U MEET TO PROFESSEONAL AND DISCUS THE PROBMEM AND EXPLAIN SOURCE OF INCOME

Danish Jain

Tax Adviser

397 Points Joined February 2017

If you have done nothing illegal i.e if you have not tried to hide your income to save tax than do not panic. Income tax dept just want an explaination regarding the credit card payment and cash deposit because it is very feasible to understand that how can a person deposit 10 lakhs plus and make payment of Rs.2lakhs from credit card keeping in mind his annual income only Rs.2 lakh.
Do not panic just give proper explaination to income tax dept and the issue will be resolved

Danish Jain

Tax Adviser

397 Points Joined February 2017

Next time onwards keep in mind the high financial transactions which are reported to income tax which is mentioned very well by Sameer.

and for now if you have fair knowledge of tax and accounting then you yourself resolve this issue or else take guidance of professional.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

You need to meet a professional. He will make books of accounts , verify whether the amounts in the notice are proper. Cooperate with him and get financially literate because taking cash loan, depositing cash in bank and paying for marriage through bank is never a sound decision.

Pankaj Shukla

STUDENT

55 Points Joined November 2016

Do you have proper record of taking a loan from family or relatives, if yes so you will have to present your bank statement and match loan amount with date with relatives and family members bank statement, now income tax officer also ask you to show ITR of your family members as well as relatives those who have give you a loan. So you have to do a proper homework for Rs 10 lac loan with documents.