I have recently received 2 demand drafts from an individual (as a part of some mutual settlement) worth 9 lakhs and 2 lakhs resp. The DDs have been made in India. I am not a regular tax payer since my income has been less than the taxable slab. I am going to deposit these 2 DDs for clearance to my SBI account in a diff city. Now, I have following questions:
1. After the DDs are cleared and deposited into my savings account, Would the principle amount (9 +2) lakh be subjected to TDS deduction?
1. After the DDs are cleared and deposited into my savings account, Would the principle amount (9 +2) lakh be subjected to TDS deduction?
2. If this principle amount is not subject to tax deduction at source (TDS), than would it be considered as a part of my taxable annual income for the current tax year? I guess what I am trying to ask is - Would i have to report these 11 lakhs as a part of my annual income and file tax for the current year in 2012? I am sorry if this sounds silly, I have no experience with taxes in India.
Thanks for you time and answer.
CAclubindia
