we got a notice for the financial year 2015-16 for cash deposit of 40 lacks in BOI. Actually that was my father retirement benefits and total savings of 35 years service. That cash was came from closing of fixed deposits of my mother and father in a rural bank. Cash deposited account belongs to my mother(BOI). But my mother has two PAN cards. BOI account has one PAN card and Rural bank has different PAN card. Now we didn't use the rural bank account Pan card. Notice came to the Pan card which we use present. we have all the statements of accounts.
No need to worry. File a reply to the income tax department with all the proofs i.e. statements of accounts of your mother account and the source of fixed deposits in your mother account. Also provide the ITR returns of your mother if filed for that period. Try to surrender the unused PAN card.
Thanks
It is advisable to surrender the pan card which you are not using and in the letter to AO. explain the source of income.
Hii
Don't worry
submit reply with department with source of such cash deposit, as you said from closure of FD and retirement benefits .problem came when we have not proper source of cash
do not disclose other PAN in reply and surrender the same as soon as possible to avoid any hardship in future.
But compliance portal asking from which Pan card that money came
What is the difference in both PAN Cards?
You give the active pan card no of your mother. And give the explanation in remarks the entire fact.
Are you aware of the fact that she has two PAN? Why you didnt surrender?
I know this recently, my parents didn't recognize the two different numbers. They feel both are same. Now how to surrender the pan card, and required documents?
Date of birth difference
You can surrender it online. If you want i can provide you the link. Or you can search in google. Or you fill form 49A and submit it to AO. Along with covering letter
mention PAN card which you are using and apply for correct of PAN card , in correction form you have option to surrender PAN card if you have more then one PAN Card
Submit application on the plain paper with original PAN card to the concerned AO or go to any facilitation centre e.g. Alankit for surrender of PAN card.
No issues. In the compliance portal fill the PAN card of your mother and in remarks just tell the source of money in limited words and surrender the PAN card as suggested to you.Might be department will ask for indemnity bond or affidavit in case of misuse of surrender PAN card.
Hi,
I think you will need to convince the AO on the source of the income. Till the time you have adequate supportings to prove the source of the income it should be fine. However having two PAN nos for the same person is an issue and not legal too.
My suggestion is mention in details in the online portal and if need be you may have to meet the AO to convince him. Please keep all your documents and proofs ready. And yes, please surrender the PAN card which is not being used immediately.
Regards,
Nikhil
Hi,
Firstly, since there have been two PAN Cards issued and no action taken by you for such a long time, you are liable for penal actions under Income Tax Act, Section 139(A)(7) and 272B. A fine of Rs. 10,000 shall be imposed.
Ignorance of law is not a pleading to avoid any penal provisions of any law.
Secondly, if the money was withdrawn from the bank account (rural bank though) of your parents and deposited again in the bank account of your parents only, now you have to prove various questions to the satisfaction of AO with all the supporting documents. Some of the queries might be as below:
1. If money belonged to the same person, why cash movement was done and not bank to bank transfer was done. (You can reply by something like rural bank didn't have such facility. Although AO may not like that as this is not at all possible)
2. Prove the fact that the owner of the two bank accounts (rural and urban) are same person, since there were two different PAN Cards used. (You can provide proofs related to photographs used in bank accounts and signature, etc. to validate the identity of the account owner.)
3. Justify the fact that all the money earned was from legible sources and has been duly disclosed in the income tax returns of past years. (Since the amount involved is quite high, you have to see what all answers you can build up to verify these).
Since you have not complied with the law, you have to face the proceedings now and advisable is to provide best answers to the satisfaction of the AO.
Regards,
Hi
With carrying two PAN cards for one individual a penalty upto 10k can be levied.
For your case, the best to be done is surrender the old PAN which can be done online through nsdl website. Then, quote the correct sequence of events that have occurred in reply to the notice. One may have a reason for unknowingly getting a new PAN when he/she already had one. Also, specify all the sources of the funds deposited in the account in reply to the notice.
Immediately surrender the unused pan card ,and submit reply with proper clarification describing the sources of income.Get all the proofs and previous ITR (if any) properly documented .
Case needs to be presented in person to income tax authorities.
Hi,
Your father may have to pay penalty of INR 10k for holding two PAN cards. It is advisable to surrender the PAN immediately.
Further, you can reply to the AO mentioning the facts mentioned in your question. However, you need to prove the genuinity of the transaction and the FD was made out of tax paid savings etc.
Please feel free to call/ revert in case you need more clarity
Thanks and regards
Abhishek Dugar
CA CS B.Com
