Funds of relative put in bank account for constuction of house
yash007
(Querist) 10 December 2013
This query is : Resolved
We 3 brothers and uncles and our few relatives come together for remake of our old house at village by demolishing it. we have decided to remake it in 35 lakhs (appx). now my question is our family appointed me to keep all monies in my bank account..share is 3,00,000/- each. is it safe to keep such money in my account ? do i have to face any taxtion duty or liability or any procedure thereof ?
BAALASUBRAMANNYAMM
(Expert) 10 December 2013
Yes. You are the answerable to the IT department, in case of filing of I.T.Returns at the end of year filing.
ajay sethi
(Expert) 10 December 2013
you will have to explain the source of funds .
Rajendra K Goyal
(Expert) 10 December 2013
Better open new and separate account for construction of house property.
Take share of all through cheque only and not otherwise.
Vineet
(Expert) 10 December 2013
Agree with Mr Goyal. Open a new joint account and accept contribution in the same by cheque. Also maintain a joint declaration by all persons to this effect.
Sudhir Kumar, Advocate
(Expert) 10 December 2013
Agreeing with above I will also add tat such steps will save you from allegation of embezzlement (only to some extent) which you will later face while working for joint property.
R.V.RAO
(Expert) 21 February 2014
how do you explain the source of funds in your bank a/c?
what about interest credited in your bank a/c and also TDS deducted from out of interest credited to your a/c?
you have not stated whether the money deposited in your bank a/c (Rs.30 lacs was by cash/cheque etc..?)
if it is done by cash there may be a
liability under sec 285BA(cash deposits in bank account exceeding Rs10 lacs in a year).
open joint bank accounts for each 3 of you as one a/c.(banks may not allow more than 3 as joint holders in bank a/c).so there may be 4 bank accounts.
make a written statements of the contributions and joint a/cs and purpose of contributions etc.in the form of a record which will be handy in times of need..to prove that your intentions are genuine.
