Past car buying query
One Hyundia i10 grand car was bought in name of my wife with contributions from her parents in the year 2014 in month of February. It was bought mainly in cash with no EMIs and PAN was declared. Cost of car was around INR 5,50,000.
Now, few months back she got an enquiry from IT about the purchase and explaination. My father-in-law's CA negotiated with IT person and is asking to pay INR 53,000 in cash for clearing the enquiry.
We got married in Dec 2013, have nothing to hide and are ready to pay whatever is the legal penalty.
Annual salary of my wife is around 12,00,000 now and then it was around 7,00,000 with duly filed ITRs. Similar is my salary, may be a little more.
Now I do not understand what are the complexities involved, what have we done wrong and how we can get out with bare minimum penalty?
Asked 1 month ago in Income Tax from New Delhi, Delhi
you can easily explain to Income Tax officers regarding the source of income and purchasing car from that.There is no penalty under income tax act in your matter.seek professional advice from any other CA in your matter.
Talk to Deepak Arora
Could we show as gifts from parents and parents in law and husband, that will divide the amount in small pieces because her parents have not show this gift in ITR of that year or there is no need to do that?
Could she show this cash as marriage gift as we got married just two months back?
Is it necessary to show withdrawals from accounts in case of gifts to relatives in form of cash pertaining to certain months before the gift or there is no need for that?
Asked 1 month ago
you can show some amount from accumulated savings of her and some amount as gift received in marriage.
Talk to Lalit Bansal
CA, New Delhi
5.0 on 5.0
Could you please clarify that how was the purchase consideration paid ? Was it through a Cheque or totally in Hard Cash to help me guide you better.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Talk to Rohit R Sharma
5.0 on 5.0
Since you are saying you got a Notice from IT Department, it would not be proper on my part to comment without looking into the Notice.
Request you to share the Notice by email to firstname.lastname@example.org so that I can help you in this Regard.
Talk to Pradeep Bhat
5.0 on 5.0
hope your query is answered . For more info mail at email@example.com
Talk to Shyam Sunder Modani
4.7 on 5.0
. Gifts with a monetary value of over Rs 50,000, received from anyone other than a defined relative, is subject to tax in the hands of the recipient.
2. However, gifts received by the bride and the groom, on the occasion of their wedding, are exempt from tax.
3. Deposit cash received as gifts into the bank account as close to the wedding date as possible.
4. High value gifts, especially a car or a house, should be supported by a gift deed, dated close to the date of the wedding.
in your case , had you made any payment by cheque or demand draft, or had made whole payment in cash.
can you proof to the IT department about the cash received from relatives and friends amounts to rs 5.5 lakhs. dividing into small amounts among the relatives.
Relatives as per section 56(2)
in case of individual
spouse of the individual
brother or sister of the individual
brother or sister of the spouse of the individual
brother or sister of either of the parents of the individual
any lineal ascendant or descendant of the individual
any lineal ascendant or descendant of the spouse of the individual
spouse of the person referred to in above points
if you can proof and say because you were planning to purchase vehicle so didnt deposit the amount in bank and due to ignorance didnt declare the amount received in marraiage as exempt incomein the income tax return filed.
i dont think there is any need to give bribe to the assessing officer.
your case is simple.
Talk to Vishakha Agarwal
5.0 on 5.0
There is no problem in case you can show that car is bought from tax paid money and money received from your parents as a gift which is exempt from tax.
Further, please check whether have you shown the gift from the parents in the ITR or not. You should have shown it.
Please feel free to call/revert in case of any doubts
Thanks and Regards
CA CS B.Com
Talk to Abhishek Dugar
5.0 on 5.0
As per the information provided by you, no penalty will be imposed on you since you have a justified source of income. You can directly meet the A.O and explain the source of your income and provide him the copy of your ITR.
Talk to Yogesh Kumar