You have to show this amount from your current year income (of which you can explain exact source ) or from earlier years accumulated savings otherwise you are in big trouble and have to pay tax @ 83.25 % .
thus manage accordingly
Cash deposite in my account by a friend
To help me out of debt trap my friend deposited rs 15lakhs in my account.My friend lives in Rajkot and deposited the amount all in cash in my account in Rajkot.My queries are 1)Is this amount taxable in my hand? 2)If yes, how much tax I have to pay? 3)How should I describe this fund-Gift from a friend? 4)whether I have to obtain a written document from my friend stating that he has gifted rs 15lakhs to me. 5)I had not paid any advance tax-what will be the interest on tax? 6)Will IT Dept.slap any penalty? 7)All deposites are in cash-will it attract the provisions of IT ACT Sec 269ss
Asked 8 years ago in Income Tax
Yes you are taxable @30%. Even if you treat it as gift it will be taxable in your friend as the gift is from non blood relation. Yes it will attract the 269ss.
1) If it is a gift, it is taxable. If its a loan, its not taxable.
2) The tax liability will depend upon your slab. If your income is already more than Rs. 10 L without this gift , then your tax liability will be 30.9%.
3 & 4) There can be simple exchange of letter to the effect that your friend is helping you to gift this amount to enable you to come out of your debt trap.
5) The interest will be @ 1% p.m for non payment of advance tax and deferment of advance tax (i.e., for not paying advance tax on the scheduled dates in Sept and December)
6) If you pay tax there is no penalty.
7) As the amount is deposited in your bank account, there is no violation of Section 269SS.
1. Yes it will be taxable as firstly you should not deposit so much of cash in your account, secondly your friend cannot give you loan in cash. He will be in problem.
2. We need to check all your financials before commenting further regarding taxes.
3. It cannot be said to be received from friend as your friend will be in problem.
4. The cash deposits attracts provisions of Sec 269SS. But need to check your full financials before commenting.
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