facts given: I am a salaried employee. I am paying Income tax as TDS monthly.
I have been working from last 6 years. I used to withdraw some money monthly and give it to my father to invest somewhere(however no Income on investment)
Now I need to by a property in Bangalore I need to arrange cash for down payment.
My father has all money in cash and wants to deposit in my account.
Please note the money which is going to be deposit, is earned/saved by me over the years and I have proof of Income tax paid. Just don’t want to get involve in Income tax enquiry .
1. IS IT possible to deposit around 10 Lakhs in my account as CASH (Let say 50 or 100K everyday) .
2. Is it legal or I need to answer Income tax, if they get notification of bulk amount deposit in cash.
Replies to 1 &2:
Yes, it is possible to deposit.
Answering the Income Tax Dept, it may not be possible to entirely avoid.
You will have to further establish that
1. the withdrawals were enough to cover your probable living expenses, and the stated monthly savings.
2. The money was actually saved in cash all along, without being advanced to any other person and without deriving any income therefrom.
You may be prepared with a detailed confirmation letter from your father.