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Pensioner saving

20 November 2016

My grandfather age is 78 years .. pensioner since 1995..pension is 20000rs He has having saving of rs 4 lkh in cash with him... Which he withdrawn from his account from period of time.... Now if he deposit 4lk in his saving account ..is he supposed to give tax on deposit

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185464 Points)
Replied 20 November 2016

Not necessarily, but prepare cash flow as of withdrawals less personal expenditures for last few years, for the justification of the savings, in case query raised.

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Puja Prasad (Semi-Qualified CA & Student) (336 Points)
Replied 20 November 2016

No tax on cash deposit shall be levied if you properly explain and substantiate the same before income tax authority.

Member (Management) (325 Points)
Replied 20 November 2016

Depends on whether you can convince the Taxman about the facts of the case. If you are going to tell him that your grandfather had withdrawn the cash over a period of two years and kept all the cash with him, goodluck. Sometimes what is actually true may be hard to believe for others.