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Is it taxable income or not ?

VIJAY KUDTARKAR (ACCOUNTANT) (291 Points)

05 December 2012

Dear Sir,

Can anyone tell me one thing, If a individual recieved cash of Rs. 750,000/- by transfer from father's account to that person and then cheque of Rs. 750,000/- is given for third party for purchase of house.

Is it taxable income or not on accounts of individual ?

Plz. Reply ..

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11 Replies

CA Ashish Joshi (CA) (265 Points)
Replied 05 December 2012

Hi Vijay,

First of all, the transaction under query is of suspicious nature.

Your query is not providing clear information.

Give exact answers of following...

Whther cash is withdrawn from father's a/c? = Y/N

Whether CASH (& not cheque) is given to individual? = Y/N

Whether house is purchased in name of Individual? = Y/N (If no, then mention the owner)

After answering these questions, you would have clarity about the genuineness of the transaction.

In case of confusion, feel free to call.

CA Ashish Joshi

09998001183

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VIJAY KUDTARKAR (ACCOUNTANT) (291 Points)
Replied 06 December 2012

Yes, Cash withdraw from father's F.D. a/c

and deposited into saving bank a/c of son

then cheque issued by son's a/c to by a house of sum of Rs. 750,000/-

that amt of cash which is received by father is taxable or not ?

Is it can be Gift ?

deepali agarwal (Company Secretary) (1289 Points)
Replied 06 December 2012

Clarify ur question...Whether the payment of Rs.750000/- has been made two times or it is the same????

VIJAY KUDTARKAR (ACCOUNTANT) (291 Points)
Replied 06 December 2012

issued a cheque of Rs. 750,000/-

deepali agarwal (Company Secretary) (1289 Points)
Replied 06 December 2012

750000 ki payment 2 baar hui hai?

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VIJAY KUDTARKAR (ACCOUNTANT) (291 Points)
Replied 06 December 2012

nahi ek baar hi hui hain

deepali agarwal (Company Secretary) (1289 Points)
Replied 07 December 2012

i think it is taxable...

VIJAY KUDTARKAR (ACCOUNTANT) (291 Points)
Replied 07 December 2012

but cash received from father can be treated as gift know ........ and gift recd from relatives is exempt from tax.

Ritu Jain (CA) (39 Points)
Replied 08 December 2012

no it is not, niether section 56 will apply nor clubbing shall be done

CA Sourabh Goenka (Chartered Accountant) (249 Points)
Replied 10 December 2012

you should execute a gift deed where father is gifting you rs. 7,50,000. But you have made a mistake in this transaction.

You should not to withdrawl of cash from your father bank account. Else you should transfer this amount to your bank account directly.... then this transaction will be perfect..