Tax liability

This query is : Resolved

SYED MAHABOOA PASHA (Querist)
Follow

06 May 2013 Sir,

One Mr.Saravanan has deposited with his current account a sum of Rs.17 Lacs in the month of Jan 2012 and transfer the amount immediately to his wife's S B a/c as down payment to purchase a flat in her name.Since she is a Govt.servant,eligible to avail a Housing loan on immediate process.Both are Assessee . The sources of amount is partly from the sale of his father's ancestral properties for 8 lac and partly from sale of his own property for 6 lacs and partly from the personal savings and Chits for 2.9 lacs. Now the doubt, Is there any liability will come on the part of Mr. saravanan as High vale transaction {He only deposit the amount with his current account as one time payment and tranfer the amount to his Wife's S B account}Mr.Saravanan is a retail trader of confectionery items and paying tax accordingly if there is any liability ,what ever is earned as net profit. Please carify

CA Krunal

CA Krunal (Expert)
Follow

06 May 2013 You would be required to justify the source of income. As you said some relates to sale of property and others, so the question would be raised whether he had enough income to purchease the same when he purchased

you may require to pay capital gain on current income.

In case you are unable to prove such credit same will be treated as unexplained cash credit and accordingly taxable