My friend's uncle is 83 years old. Since last 10 years he is suffering from light Parkinson and not able to make signature. SO all his income and expenditures he is making through cash. All his income is less than taxable limit (Rs. 2+ lakh per annum) so he has not filed return in his life. Now all his life time saving is in cash in 500s so if he deposits it, will he face any problem?
How should he deposit his life time saving (savings since last 60 years) which is quite huge (50 L)?
If he deposits the money and I-Tax notice comes...how should that be handled?
Dear Sir,
If he deposit such a huge amount without filing return of income in lifetime, chances are very high that department will scrutinise the return and question the source of money.
He will have to show the source of income.
Please feel free to call/revert in case of any doubts
Thanks and Regards
Abhishek Dugar
CA CS B.Com
if possible deposit amount in family accounts instead of single account of uncle.
if not possible deposit entire amount in his account and mention on deposit slip "earning and saving of last aprox 60 years deposit due to demonetization" and take snap of this while depositing,
whenever notice receive from income tax department submit this snap and describe your source of income as mentioned in query.
one more thing withdraw amount from this account only when required , this can help you in proving this is your money and not belongs to some one else.
Hello Sir,
Before helping with an advice i would need to get my facts straight.
He has a corpus of cash of approx Rs. 50L and he is beneath taxable limit ?
Its difficult to understand mathematically because considering even if spends 40% of his yearly income on personal maintenance then also he will take atleast 20 years to accumulate the amount. And if he is sufferring from this disease since past 10 years then why didnt he deposit the funds before ?
Please get back to me on this with all the facts you can accumulate to help me find a way out for you.
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
Dear Sir,
You may deposit up to 12.5 lakh in current account.
For higher amount you should prepare cash flow or should take average of last years.
For that you shold have geniun reason.
Thanks & Regards
before suggesting need to check his Balance Sheet if any prepared and one question will arise as to why and how he kept cash for so long.
