04 March 2016
one of my client does not have any bank account in his name. his all income is in cash. now he wants to file IT return. from the AY 2015-16 disclosure of bank account is mandatory in income tax return. i tried but return couldn't file without bank account number. now please suggest me what to do. how to file such return ? can i show bank account number of one of his family member in his return?
04 March 2016
Dear You can enter account no. As 000000 14 times and then fill the rest details . No problem in that. Or your client can open a bank account with zero balance and fill the same.
02 August 2024
Filing an Income Tax Return (ITR) without a bank account can be challenging, particularly since disclosing a bank account number is a mandatory requirement in recent tax filings. Here’s how you can approach this situation:
### 1. **Understand the Requirement**
The Income Tax Act now mandates the disclosure of bank account details in the ITR. This helps in the verification of transactions and ensuring compliance with anti-money laundering regulations.
### 2. **Options for Filing the Return**
Here are steps and options to handle the situation:
#### **A. Disclosing Family Member’s Bank Account**
If your client does not have a bank account but has income, you can use the following approach:
1. **Use a Family Member's Account:** - **Disclose a Family Member’s Bank Account:** You can disclose the bank account details of a family member (e.g., spouse, parent) if it’s used for transactions related to the client’s income. Ensure that the account details provided are accurate and reflect the client’s financial transactions. - **Bank Account Details Required:** Include the bank account number, IFSC code, and bank name. Ensure all details are accurate to avoid mismatches.
2. **Ensure Compliance:** - **Document and Explain:** Maintain proper documentation and a clear explanation for why you are using a family member’s account. This explanation should be ready in case the Income Tax Department requests clarification.
#### **B. If Bank Account Details Cannot Be Provided**
1. **Contact the Income Tax Department:** - **Helpdesk or Inquiry:** Reach out to the Income Tax Department’s helpdesk or contact your jurisdictional Income Tax Office (ITO) for advice on how to proceed if your client cannot provide a bank account.
2. **File a Paper Return:** - **Manual Filing:** In some cases, if online filing is not possible, you might be able to file a paper return. However, this is generally not recommended unless specifically advised by the tax authorities.
3. **Explain in the Return:** - **Explanation Letter:** You can provide a detailed explanation in the return or as an additional document stating why a bank account cannot be disclosed. This should include the nature of transactions and the reason for not having a bank account.
### 3. **Additional Considerations**
1. **Legal Requirements:** Ensure compliance with all legal requirements. Lack of a bank account can sometimes trigger additional scrutiny from tax authorities.
2. **Future Planning:** - **Open a Bank Account:** It is highly advisable for future transactions and compliance to open a bank account. This will simplify tax filings and ensure adherence to legal requirements.
3. **Seek Professional Advice:** - **Consult a Tax Professional:** If you are unsure about the process, consulting a tax professional or chartered accountant will provide clarity and ensure correct filing.
### Summary
- **Use a Family Member’s Bank Account:** If feasible, disclose the bank account details of a family member with proper documentation and explanation. - **Contact the Tax Department:** For guidance if bank account details cannot be provided. - **File a Paper Return:** As a last resort, if online filing is not possible, and ensure you have a detailed explanation ready.
Following these steps will help ensure compliance with tax regulations and facilitate the correct filing of the income tax return.
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