13 January 2019
Background: I had withdrawn cash for renovation of my new flat (purchased in Jan'2015 for 1.25Cr) to the tune of ~19L-20L in FY2014-15, and FY2015-16 and gave to my cousin sister for spending on renovation, decoration, repair, furniture,labor etc. as I would be away on tours. It was our family matter and internal arrangement. I have paid taxes in the same FYs as well. In year 2015 in August, ACB raided house of my cousin and confiscated my 19L from her house. I claimed the same in the court and demonstrated how money was withdrawn. I was NRI for 18+year since 1992 until 2010 and had substantial savings. And was earnig ~4-5L/pm on return to India as Consultant. Court passed order in my favor, and ACB had to reluctantly return my 19L with interest thereon. Now after four month of order, ACB issuing letter asking me to furnish details of Tax filed with balance sheet to reflect if I had informed ITD about 19L given to my cousin sister for renovation works. For this draw-out of 19L, (actually more cash been drawn for various spending), it is taken in account by my CA already, but not specifically mentioning this aspect that such and such amount is meant for renovations works. I earn ~60L/pa in India. My Query: Am I under any legal obligation to inform anybody as to how I am spending my cash, whom I have given for what purpose etc. since I am paying taxes on that cash amount as well, that is to say, also paying on my whole year salary TDS/Service taxes etc. as well. Thankx in advance. Regards,
14 January 2019
No legal obligation to inform anybody as to how you are spending your cash, whom you have given for what purpose etc., If you are paying taxes on that cash amount as well and filing return with disclosure of assets and liabilities if your income exceed 50 lacs PA.