Question on accumulated cash
Hello
My father aged 55, working in a private sector company(which isn't registered), has never fallen into taxable income bracket till now. He has accumulated an amount of ~ Rs. 16 lakhs from savings in last 25 years and it is currently in the form of cash.
This amount in never recorded with banks/income tax department. With the demonetization of 500 and 1000 notes, the above 16 lakhs needs to be deposited into a bank account. I'm hoping this transaction of depositing huge amount may fall into income tax scrutiny. From my understanding there is no illegal money/transaction here, what are the proofs that we need to keep when IT department asks for an explanation for this transaction ? Are we required to pay any income tax here ?
Thank you!
Asked 7 years ago in Income Tax
Thank you for the reply!
The above amount was in circulation i.e. was lent to our relatives at a nominal interest rate and they have recently returned it back.
does it mean, we are obligated to inform govt(via banks) on the details of money we hold ?
Asked 7 years ago
