I have a sister(married at present). shes doing household works at present. i want to file her income tax return. how i can prepare compuatation of income for her? i mean what nature of income i will show so that it looks genuine. i dont want to show NIL Return.if i want to show the figure then what is exact figure so that transaction can be genuine. i want to file return for A.Y. 13-14 and 14-15?
04 May 2014
You are asking to find ways to show things genuine which are in fact bogus. . . Better you/your family/her in-laws gift some money to your sister so that she will earn some interest thereon and thus you would not be required to file her return as NIL. .
04 May 2014
. However; she can show some money as pretty gifts to the tune of Rs.6000-12000 each year. . . This is genuine according to our social system. We gift some money regularly to our sister/daughter/sister in law/daughter in law on various social ceremonies and religious festivals.
04 May 2014
what is mode of giving her a gift? gift deed is to be prepared for the same or not. she is married so who can give her gift( for eg her husband, her own father or brother) how interest income is to be shown for the same.
i want to know that what i will do for previous return? how can i gift the same to file A.Y.13-14 return?
05 May 2014
At the time of her marriage,she might have received so many cash gifts from your parents and her in-laws and relatives (friends also). . . Make a list thereof and show it as marriage gifts. . Marriage gifts are exempt. . . For such gifts; no deed is required. But prepare a list of such gifts with name of the donors. . . However; for other gifts; you have to make gift deeds. . . If she is actually doing nothing; no income is liable to be shown in AY 13-14. . .
05 May 2014
If without documentary evidence you show the income; it may be treated as unexplained income and tax would be levied at 30% of the income you show. . Don't follow the advice of your relatives and/or friends if they suggest so. .
From current A.Y. 2014-15, for such income if shown, no basic deduction of Rs. 2 lakh would be allowed. . If you show income of Rs.60,000/- which is not taxable and no evidence is there; you have to pay tax of Rs.18,000/- whenever noticed by the Income-Tax Department.
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