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investment

CA Mohd Gouse (Chartered Accountant) (497 Points)

04 October 2007

dear friends, i want 2 ask this question it may sound silly but i want to have clear cut idea,if i keep about Rs 2 lac in my bank account does it going attract income tax issue??????.....

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4 Replies

Aisha (Finance Professional) (8099 Points)
Replied 05 October 2007

You should be able to explain the source of the 2 lac

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CA.Saibaburao Nanduri (Chartered Accountant) (3847 Points)
Replied 05 October 2007

dear m_s_e,
You have to explain the source to the incometax department, as correctly pointed out by Ms Asha, besides this tax deducted at source (TDS) provisions may also apply.

Prakash Popat (3134 Points)
Replied 05 October 2007

You can plan no tax liabilities.

ravi sankar (Chartered Accountant) (157 Points)
Replied 05 October 2007

Dear If this 2 lacs in SB is out of an "income earned" by you, then u would have paid "r' whould have to pay income tax after including the interest earned on sb a/c. If this 2 lacs is capital receipt on sale of property or investments, calculate the gain portion to determine short-term or long-term and apply the tax exemptions possible. e.g gain share investment held for more than oneyear is completely tax free. Taxation issue doesnot arise merely because money is in SB a.c. Taxation issue arise maily because of the income earned. Even for wealth tax, money in SB a.c will be exempt.(if you have more than the wealth specified in wealth tax act) ravisankar