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Money deposited using crossed cheque in the account of other person

B (Engin) (205 Points)

21 June 2016

Suppose I deposited money using a crossed cheque in the savings account of Mrs XYZ. Will Mrs. XYZ have to pay income tax for this credit? Will Mrs. XYZ will face any issues for this?

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4 Replies

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 21 June 2016

What is the connection between both the parties?

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B (Engin) (205 Points)
Replied 22 June 2016

Good question. No professional connection.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 22 June 2016

B (Engin) (205 Points)
Replied 23 June 2016

If this is between relatives, how there cannot be any problem? Will not IT department see a money transfter into somebody else's account? Will the IT department consider it as an Income for the person in whose account the money is deposited?

Regards