One of my client's father expired in FY 2021-22 and his father's bank fd matured in the same year. Hence his son withdrew the amount from bank in cash and deposited this cash in his own bank account.
Now his son's AIS report shows a Cash deposit of Rs. 10 lacs which is not his income but only the amount withdrawn from his father's account. His mother is also no more.
What should be done in this case. Can this amount be not shown while filing income tax return.
24 July 2022
Cash withdrawal after expiry of the father amounts to withdrawal from his own account (legal heir) and deposit in his other account . No problem in such a case. Report it in ITR.
06 August 2022
Keep the reconcilation ready with total cash withdrwan from Father Account and total cash deposit in the bank account. THere are chances of ITR of client getting selected for scrutiny. It ia advisable to show the cash deposited as exemot income in ITR.
CAclubindia
