Sir I like to buy a car costing less than 6 lakhs in my wife's name from the inherited funds from my mother deposited into my bank account. If I pay the car dealer by way of a DD will they send a notice asking for source of funds ? If I get such a notice , if I furnish the above details is it satisfactory ? will there be a further probe. I am an NRI working out of the country.Hence concerned about the law related consequences as I am not in the town to attend Thanks in advance
Dear Sir,
Ideally, if you a have inherited any funds, you should have disclosed the funds in your income tax return. Though, it's tax free but you are liable to disclose it.
But since the cost of car is only 6lacs, I don't foresee any problem.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
If you give a satisfactory answer then there is no problem
Dear Sir,
The explanation seems to be satisfactory although they can ask for source of income from the tranferror. Also if taxable income amount was under stated they can impose penalty of 200%.
For any further clarification feel free to contact us.
Hello Sir,
You can very well buy a car out of those funds. No tax will have to be paid on the same.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
