Cash deposit to new bank account of house wife - tax query

Tax queries 3827 views 4 replies

My wife and I married 10 years back.


She never worked (housewife but has PAN card). We never filed income tax return for her.

 

Over last 10 years she has collected cash via cash gifts from parents and relatives - about 2-3 lakhs. (not big amount for 10 years).

 

Earlier we would just keep the cash aside and not invest anywhere. Now we are planning to invest them.

 

We have already opened bank account recently. Now we are planning to deposit the same in her bank account.

 

My question is:

  1. How much money should we deposit in bank?
  2. Will she have to file income tax?
  3. What is the minimum amount which we can deposit in bank that will not require filing of income tax?
  4. Should we deposit all money at once? Or we should deposit in batches till March 31st?
  5. Will this catch eye of IT department? NOTE: We have nothing to hide but we do not want attention of IT department.
  6. There are friends/relatives who tell me to give money to them and they will give cheque etc. But we do not want to take that route.

    We want to do it legally and honestly. But since they are regular cash gifts from parents and relatives over past 10 years, obviously we do not have any proof.

 

Please advice. Thanks in advance.

Replies (4)

you can deposit every time upto 49000.- only sithout hassles. 

if total income in the account does not exceed 2 lacs per year, say by 31 march 2015, she can deposit her moneys in one go too, as she is not taxable earner of any income but just a housewife, even if taxman comes to know the deposit he will not move against her as she is falling within the limits of income set in the 2014 finance act. 

you can even meet the tax PRO  to help you  as your wife is just a house wife and all the moneys are gifts to her if from her parents there is no tac liability at all, as your wife not flouted the tax law though she could not file her returns....after all the tax law is dependent on finance acts every year...TAX LAW is some revenue generation for government, so it is some administrative Act subject to natural justice.. under art 14 of the indian constitution.. withoutaudi alteram,partem no tax man can levy any tax liability under any of his sections, if done he would suffer from bad inlaw situation that would set aside the very tax man's notice itself, if well argued simple and plain interpretation of statutes, after all no Act is well drafted even anytime in the history of legal drafting from day one of drafting by legal draftsmen of any parliament or legislature ay where in the world, after all finance acts are some great innovation year over year, so it is obvious they are full of great many defects, so i said you need to get good advocates to properly represent your case.

 

when you meet PRO of tax dept he might say you need or neednot paty tax and that way u just abide you will have no hastles..   

Thanks for the answer.

 

Your first answer helped. But 2nd answered confused me because my main intention was not to involve IT department!

 

But yes I think your first answer is sufficient for me. Thanks.

OK. GO BY FIRST. NO PROBLEM.


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