I purchased residential plot during 2009 year for 10 lakhs. I sold the same this year for the same rate. All transactions were done thru my bank account.
At the time of purchasing the plot as I was short of 2 lakhs, my brother-in-law who was in other city offered a gift of 2 lakhs and deposited the same in my bank account as cash. Later I issued cheque for 2 lakhs to the developer and purchased plot and registered on my name.
Now query has come from IT regarding the source funds. Kindly tell me how I can represent the above. Kindly advice.
11 October 2012
As per section 56 (2) (vi) any gift recieved in cash or kind from relative is expemt after 30/09/2009 but the income tax department is asking for the source of income for the rest 8 lakhs.
CAclubindia
