Payment recovery

Dear sir,

My mother has given Rs-50000.00 by cheque to her cousion in 2008-09. Cousion has give interest only for  one year. after this neither give interest  nor principal amount. My moher provide him 15G form every year for non deducting of TDS. My mother is waiting for last 3 year in good faith but above person now deny to refund principal amont or interest. In above case can Incometax department help  to  recover mony from relative. my mother show interest amount in her income tax return every year and our relative also take benefit in his return.

 

 

 

Replies (1)

Dear,

As per the provisions of Limitations Act, a lawsuit may be filed within a period of three years from the date of debt becoming due on such borrowing, which in your case has expired.

In your case, no recovery regarding the principal amount can be made, but since the person is availing the benefit for the interest payment, which is actually not paid leading to default on his behalf. Your mother, may make an application to CIT of her Range regarding such non- payment of interest.

In the instant case, if an application is made the CIT of your range, the case can be opened up in scrutiny as per the Income Tax Act.

Further more, if during such proceedings, any tax revenue is generated by the Authority, an incentive base on such revenue generation shall be awarded to your mother.

 

Pallav Agarwal

pagarwal.icai @ gmail.com

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