04 March 2016
my client have 6 lacs rupees in cash and he wants to deposit on the bank account due to senior citizen and ill health. He will save all money during the entire life. And he doesn't pay any tax due to agriculture income and very under the limit earning. so how can he deposit the amount in bank . I want help in tax management planning. becoz he is a poor people and he will not want to pay any tax because legally he is not responsible due to it is his entire life saving. pls suggest what can I do with his prob.
04 March 2016
Dear No problem at all because bank are required to report to the income tax deptt the details of accounts in which total deposits exceeds Rs. 10 lacs. And in your case the amount is less than the limit. Also your client is earning income from agriculture and same is non taxable I.e exempt fro. Income tax So no worry.
CAclubindia
