Cash circulation: Is extra cash being deposited in your financial savings account than the restrict? If you do not care for this, you could face critical hassle. The day greater than Rs 10 lakh cash is deposited in your financial savings account in a yr, you will get into legal hassle. You will get a discover from the Income Tax Department. Then a sequence of questions will begin on your each reply. Evidence will be requested in help of every of your solutions.
If evidence just isn’t discovered then legal motion will be taken
If you get caught anyplace in answering or get misplaced or are unable to gather evidence, then the noose of the legislation will be tightened towards you. Your financial institution accounts could also be frozen and you could even find yourself in jail. Therefore, you ought to keep the proof each time cash is deposited in your account. That evidence should embody solutions as to who has deposited the cash in your account? Why did he deposit cash in your account? Has he deposited this quantity for any enterprise or any service supplied by you? Or he has repaid any mortgage taken from you. Is it doable that he has contributed cash to your private account for the operate or is it a reward? While trying to find solutions to all these questions, together with the evidence, you will even have to offer proof that no matter cash has been deposited in your account, you have proven it or are going to indicate it in your revenue tax return. If it’s not so, then you will additionally must show that the quantity deposited in your account just isn’t taxable revenue.
Will get trapped even when greater than Rs 2 lakh cash is deposited at one time
It just isn’t that after depositing cash in your account for a yr, when its restrict exceeds Rs 10 lakh, the Income Tax Department will query you. In truth, even when greater than two lakh rupees are deposited in your account by anybody particular person in a day, you could must face hassle. For this additionally, you will must reply the identical questions as you must reply in case of whole deposit of greater than Rs 10 lakh in a yr. An identical discover will even be served to you from the Income Tax Department.
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