Transferred money in Maternal uncle bank account

ITR 233 views 5 replies

Vicky Kumar

Job

124 Points Joined April 2024

I had transferred 2.5 lacs rupees in Nov'24 in my maternal uncle bank account as he need this money for purchasing flat for himself.

When he was returning money to me, I had asked him to purchase electronics goods like 2 ACs, TV, Fridge, washing machine etc. for me as my uncle has several credit cards using which we can get good discounts.

He had purchased above electronics items for me in Apr'24.

I am filing ITR2 for FY 2023-24, do I need to mention this 2.5 lacs in loan/advance section of assets and liabilities schedule as I had ttransferred this amount in maternal uncle account in Nov'24 (i.e. FY 2023-24) but my uncle purchased electronics items for me in Apr'24 (I.e. next financial year).

Also, these electronics items costed only 1.5 lacs. He will return the remaining amount to me in my account.

So, please let me know, do I have to disclose this 2.5 lacs amount given in loan and advance section of asset and liabilities schedule. If yes, then do I have to mention the complete 2.5 lacs amount or just 1 lacs amount (that he would be transferring in my account as electronics items costed around 1.5 lacs)

Replies (5)

CA ALOK KUMAR

FCA LLM (NLU) Anti-Money Laundering Sp

644 Points Joined February 2015

When filing ITR-2 for FY 2023-24, you need to consider the following points regarding the transfer of INR 2.5 lakhs to your maternal uncle and the subsequent purchase of electronic goods:

1. Disclosure Requirement: Schedule AL (Assets and Liabilities) in ITR-2 requires the disclosure of various assets, including loans and advances given, if your total income exceeds INR 50 lakhs in the financial year. If your income is below this threshold, you are not required to fill out Schedule AL.

2. Loan/Advance Section: Since you transferred INR 2.5 lakhs as a loan to your uncle, this amount should be disclosed under the "Loans and Advances" section if Schedule AL applies to you. Even though the electronics were purchased in the next financial year, the loan was given in FY 2023-24, so it should be reported for that year.

3. Amount to Disclose: You should disclose the entire INR 2.5 lakhs given as a loan/advance in the assets and liabilities schedule, not just the remaining INR 1 lakh. This is because the disclosure is based on the loan given during the financial year, regardless of how it was utilized later .

Vicky Kumar

Job

124 Points Joined April 2024

Hi Alok,

Just one correction...I had given 2.5 lacs (in Nov'24) to uncle, out which my uncle purchased electronics goods worth 1.5 lacs in Mar'24 only (in same financial year).

Now, should I disclose remaining 1 lacs in ITR as loan/advance given or do I have to disclose complete 2.5 lacs.

Please suggest.

CA ALOK KUMAR

FCA LLM (NLU) Anti-Money Laundering Sp

644 Points Joined February 2015

Net amount after adjusting the amount spent on your behalf. Make sure all the puchase invoice/bill should be in your name.

Vicky Kumar

Job

124 Points Joined April 2024

Hi Alok,

I have already filed the ITR on 12-Jul....its not been processed yet.....if I revise my ITR tomorrow then in that case any late ITR file fees get applied to it (as last date to file ITR is 31-July).