Respected Sir/Mam,
I am very confused and stressed since last few days. Please advice me what should i do?
1. I am 45 year old and a regular tax payer.
2. I am in 30% tax slab.
3. I am a salaried employee and save good amount of money every year.
4. My mother is a house wife and senior citizen.
5. She has no income source.
6. Now in 2012, i opened her bank account and started transferring my monthly savings in her account usually every month.
7. I started investing in FDs and mutual funds on her name. I have almost invested 40 lacs on her name.
8. I never filed her return since returns from these investments was below the income tax limit.
9. In FY 19-20, i transferred around 7 lacs in her account and few of the last years FDs were matured.
10. Now since for her bank account auto FD feature was enabled so system has automatically created FDs and it crossed more than 10 lacs.
11. While the actual FDs done by me was of 5.6 lacs only. I checked with bank and they said it happened because of swipe-in swipe-out FD feature where any amount present in saving above 10 thausand automatically converts into FD.
12. Now i noticed that bank has reported SFT-005 in her form 26AS for amount 5.6 lacs.
13. In FY 19-20 her total income from other sources (FD+Mutual funds) was 80 thausand only.
14. Now Sir i have few queries, Should i file her return with total income as 80 thausand income only or should i also show 7 lacs rupees as gifted amount?
15. Will tax man consider these transfers as gift?
16. How much penalty he can impose on me?
Please guide.
Thanks You
CAclubindia
