I am an NRI living in gulf, construction of my house is in progress and i usually transfer money to my mom's account so that she can settle workers and vendors. As she is alone she usually keep some buffer of money at home 5 - 6 lahkhs. After demonitization these currencies (1000 and 500) become invalid and need to deposit back to the bank. I have an NRO account and planning to deposit in the same. However I have been herring rumours like there will be 200% tax etc.. Can you please help to clarify
Dear Sir,
If your mother is regularly withdrawing amount from account and this deposits are made out of this amount only and from no other amount than you can surely deposit total value of Rs. 5 Lacs - Rs. 6 Lacs and no need to worry at all. There may be chances that you may receive an inquiry from Income Tax Department but said can be answer and no question of penalty can be there. Its genuine case of surplus fund on hand and no need to worry about any penalty applicability on it.
Dear Sir,
Can you please calculate how much amount you have given to your mother from 01 April 2016 to 08 November 2016 ('specified period'), if it is more than 5-6 Lakhs, we can show that amount as a gift from you to your mother in her return of income.
Further, we also need to check whether she has withdrawn 5-6 lacs during specified period. If yes, then she can easily deposit that amount back to her saving bank account.
Even if the above is not true, she can still deposit, but it will be little difficult to prove.
Thanks and Regards,
Abhishek Dugar
CA CS B.Com
Hello Sir,
It is preferable if she deposits the funds back into the account from where it was withdrawn in the first place, to avoid any future complications.
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 can deposit the above mentioned amount in same bank account. In case of any inquiry from department you you can easily explain the same.
For any further clarification feel free to contact us.
