Request for Information by ITO regarding Flat

Since the case of your builder is under assessment, the officer has called you for the information only. Please dont panic as you are not being assessed.

The Copy of your bank a/c means the bank statement of the A/c which you hold.

ya... okdint worry

Is there need to furnish the Gift Deeds etc. Since I only have Cheque/DD copies?

Also bank statement for what period. Flat was purchased in May and I had received the gift cheques in April 2008.

 You need to submit the bank statement related to the A/y for which the builder has been assessed. No you dont need to submit the gift deeds as they have not asked for it. Only submit those documents that asre asked by the AO.

Please confirm what is the meaning of

"copy of bank account in your name and sources of investments made for purchase of said flat"?

Does "sources of investments" means sources of my income or statements of bank account where transactions where originated?

Please reply ASAP.

I had a talk with my lawyer. He said I should also furnish my all details of income including bank statements for my Father, wife and mother in law who gave me cheques. Is it right to furnish this much detailed information right now though I'm NOT assessed by the requesting ITO.

Also reply for previous question also.

copy of bank account in your name and sources of investments made for purchase of said flat", means the bank statement(or pass book )  of the A/c from which you have paid money to the builder.

and sources of investments made for purchase of said flat means the sources of money , you can furnish  the details of the money which is paid by you,e.g your P?L and balance sheet. Other other detail eg. LIC policy matured detail , salary  details

For purchase other than my salary I had taken money from my Father, Wife, Mother in law.... Do I just need to furnish copy of my Bank Statement along with copies of gift Cheques Received? OR Also the bank statement & PAN copies of my relatives as well.

Please reply ASAP.

Sorry, since "sources of investments" is part of "copy of bank account in your name and sources of investments made for purchase of said flat". So shall I consider your first answer only OR second answer also while making the reply.

Sorry but please clear from their wording:

1.  Amount for which Flat booked.

2.  Details and Proof of payments made to builder. Also to furnish copy of bank account in your name and sources of investments made for purchase of said flat.

3. Also to furnish PAN and Ward/Circle where I’m being assessed to tax.

What exact documents I need to furnish?

Any sources of income also?

OR only bank statement of transactions to builder for that period only or for that whole FY?

Please reply above 3 questions.......

Hi

 1.  Amount for which Flat booked.

Ans: Pls produce copy of bill  / invoice given by the builder.

2.  Details and Proof of payments made to builder. Also to furnish copy of bank account in your name and sources of investments made for purchase of said flat.

Ans Please produce the copy of cheque and your bank statement for the same. Since it is a case of gift, the same shall not be taxable as u have recd all from ur relatives. Just furnish a statement showing amount of gifts recieved by u from various relatives.

3. Also to furnish PAN and Ward/Circle where I’m being assessed to tax.

Ans Furnish any recent copy of Return of Income (ITR 4) for the same.

Other sources of income : The gift u have recd. is other source of income but since the same has been given to u by ur relatives the same are exempt.

Regards

 Also please furnish the Bank statement for the whole year related to such year.

Under which section Gifts from Relatives will I get exemption?

Within ITR2. The section Income from Other Sources has exemption only from Section 57. Please clear me how to give gift details within ITR.

Section 56(2)(v)

Gift received on or after the 1st day of September, 2004 8[but before the 1st day of April, 2006

 where any sum of money exceeding twenty-five thousand rupees is received without consideration by an individual or a Hindu undivided family from any person on or after the 1st day of September, 2004 [but before the 1st day of April, 2006], the whole of such sum:

Provided that this clause shall not apply to any sum of money received—

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(c) under a will or by way of inheritance; or

(d) in contemplation of death of the payer;

[(e) from any local authority as defined in the Explanation to clause (20) of section 10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) from any trust or institution registered under section 12AA.]

Explanation.—For the purposes of this clause, "relative" means—

(i) spouse of the individual;

(ii) brother or sister of the individual;

 (iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi);]

Section 56(2)(vi)

Gift received on or after the 1st day of April, 2006

where any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1st day of April, 2006, the whole of the aggregate value of such sum:

Provided that this clause shall not apply to any sum of money received—

(a) from any relative; or

(b) on the occasion of the marriage of the individual; or

(c) under a will or by way of inheritance; or

(d) in contemplation of death of the payer; or

(e) from any local authority as defined in the Explanation to clause (20) of section 10; or

(f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(g) from any trust or institution registered under section 12AA.

Explanation.—For the purposes of this clause, "relative" means—

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi).]