Scenario based Income Tax query

Tax queries 112 views 4 replies

Rahul

Tax Payer

24 Points Joined August 2020

I am Male - 32 yrs have deposited 40 lakh over a span of 5 years in a joint account bearing my wife's name as first holder and mine name as second holder . The interest accumulated over the years , TDS has been cut under my Wife's name and her PAN card.

Now I am buying a flat with 40 lakhs in my name . She is transferring the amount to my account and I will buy a house under my name

Question in future will I have problem showing the source of income ? or this is a common approach ? What I am doing is it legit or missing something ?

Replies (4)

CA. Sourav Sarkar

Chartered Accountant

24588 Points Joined November 2019

No problem as it can be shown under relative

Leena Raghuvanshi

106 Points Joined January 2021

Dear Rahul,
No it will be under the provisions of Clubbing. There will not be any issue.
You can proceed with the same.
Thanks and Regards,
RA.

Krishna Chaudhary

Accountant

4531 Points Joined February 2017

As per current situation the income tax department will ask you the source of 40 lacs.if you have received this 40 lakh from the joint account, then from where you have earbed it for depositing in joint accounts.

if you have a valid source of income then it is ok but if you don't have a valid source of income the whole income will be taxable at the rate of 78 %.