• Regarding huge cash deposits

I am in a situation where, I need to show 50lakhs proof of funds to visa officer for studying in USA. But I have nearly 2.5lakhs in my bank account, I have seen some people who borrowed the money for partial time and paid back. So, currently i am gathering money from relatives and friends for the remaining cash in deposits. But it may draw the attention of the tax department. So what should i do in the current situation. Please give me detailed solution.
Asked 2 months ago in Income Tax

Hi,

You can draw these amounts from relatives directly through bank accounts instead of cash deposits and repay it back. Just be sure that your relatives must have the capacity to lend you those funds in the sense that either they should have high assets or earnings.

Prerna Peshori
CA, Pune
94 Answers

5.0 on 5.0

In my opinion, either you can receive the funds from your relatives as a gift or you can take the funds from your friends and relatives as a loan. 

Kindly ensure that you receive all the money through banking channels. 

Further, while the ITR for the FY 2022-23 you will find that your TIS and AIS report includes these entries of money deposited in the bank account. So kindly give a response whether it is a gift or a loan. 

Puja Sharma
CA, Jaipur
63 Answers

Not rated

Receive the amount through banking channels only in the form of gifts and loan.

 

For detailed discussion you may opt for phone consultation.

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0

Even if you are thinking to take any loan, always take it in bank account directly rather than taking cash and depositing it. As taking cash would attract more attention. If you have loan confirmations it wont create much issue.

 

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4065 Answers
70 Consultations

5.0 on 5.0

You can not do cash deposit but you can have bank entries from relatives and show is as short term loans without interest, there is no tax implication on that

Vishrut Rajesh Shah
CA, Ahmedabad
826 Answers
34 Consultations

5.0 on 5.0

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