Cash as dowry- how to counter

manager

if u havnt received any chq or draft and if received and not transferred to ur personal a/c ,it will not matter .

as a matter of fact let me tell that i lended 50 lakhs to amitabh bacchan and i had shown a transaction in my books on d particular date but bachhan has'nt received ,now i hope d ans is clear to u 

 
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Anything in cash? just forget about it...! They will have to prove it beyond any reasonable doubt !

Mere allegation and a witness with the common interest won't work.

 
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zz

Thanx to members.

Asking him:

1) Did u ever give anything in the form of chk or draft to Mr Husband

2) Any signatures of Mr. Husband as "received" on ur document

3) U did not submit corresponding ITR/ Balance Sheat/ Bank-passbook

will serve the purpose?

 

As a matter of knowledge, somebody told me 2 more facts:

* that sec269 SS of income tax act states that "any transection above 20K be done in the form of chk/drfat only".

* that such computer generated statement shud carry stamp from bank as per "bankers book evidence act 1891"

 Has anybody an idea about it & its use

 
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regarding cash payment above 20000/- u are talking about is covered u/s 40(A)(3) of income tax act.provision 40(A)(3) of income tax does not apply to a payment of expenditure which is not covered u/s 30-37 of the income tax act, i.e business expenditure. basically cash dowry is not an business expenditure at all, thats y , it will not reflect in income tax return.it is allocation of profit withdrawn from business, will be reflect in capital account of payee. and as per section 56 of the income tax act gift is allowed in cash provided made to a relative( defination of relative is also provided in section (2) of the income tax act.

 

feel free to ask regarding the matter related to income tax and finance etc.


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Freedom

Section 40A(3)(a) of the Income-tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction. However if payment is being made for plying, hiring or leasing goods carriages then Limit for these section is Rs 35000/-,instead Of 20000/- Section 40A(3)(b) also provides for deeming a payment as profits and gains of business or profession if the expenditure is incurred in a particular year but the payment is made in any subsequent year in a sum exceeding Rs. 20,000/- otherwise than by an account payee cheque or by an account payee bank draft. Section 40A(3) is an anti tax-evasion measure. By requiring payments to be made by an account payee instrument, it is possible to verify the genuineness of the transaction thereby mitigating the risk of evasion.Person are splitting a particular high value payment to a person into several cash payments, each below Rs.20,000/-. This splitting is also resorted to for payments made in the course of a single day. Courts have also held that the statutory limit in section 40A(3) applies to payment made to a party at one time and not to the aggregate of the payments made to a party in the course of the day as recorded in the cash book.According to the judicial opinion, the words used are ‘in a sum’, i.e., single sum.Therefore, irrespective of any number of transactions, where the amount does not exceed the prescribed amount in each transaction,the rigours of section 40A(3) will not apply. To overcome the splitting of payments (as given above) to the same person made during a day as referred above and to increase the efficacy of the provision, an amendment was made through Finance act 2008 and after 01.04.2008, where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, the disallowance of such expenditure shall be made under the proposed sub-section (3) of section 40A or the payment shall be deemed to be the profits and gains of business or profession under the proposed sub-section (3A) of section 40A,as the case may be. EXAMPLE : To illustrate with an example, let us assume a taxpayer has incurred an expenditure of Rs 40,000/-. The taxpayer makes separate payments of Rs 15,000/-, Rs 16,000/- and Rs 9,000/- all by cash, to the person concerned in a single day. The aggregate amount of payment made to a person in a day, in this case, is Rs 40,000/-. Since, the aggregate payment by cash exceeds Rs 20,000/-,Rs. 40,000/- will not be allowed as a deduction in computing the total income of the taxpayer in accordance with the proposed amendment. EXCEPTION TO ABOVE PROVISION: The provisions of this section are subject to exceptions as provided in Rule 6DD of the Income-tax Rules, 1962. Payment to Specified payee Rule 6DD(a)- Where the payment is made to (i) Reserve Bank of India or any banking company as defined in section 5(c) of Banking Regulation Act, 1949; (ii) State Bank of India or any subsidiary bank as defined in section 2 of SBI (Subsidiary Banks) Act, 1959; (iii) any co-operative bank or land mortgage bank; (iv) any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949; (v) Life Insurance Corporation of India. Payment to Government Rule 6DD(b)- Where payment is made to the Government and, under the rules framed by it, such payment is required to be made in legal tender. Payment by certain modes Rule 6DD(c) - Where the payment is made by (i) any letter of credit arrangements through a bank; (ii) a mail or telegraphic transfer through a bank; (iii) a book adjustment from any account in a bank to any other account in that or any other bank; (iv) a bill of exchange made payable only to a bank; (v) the use of electronic clearing system through a bank account; (vi) a credit card; (vii) a debit card. Note: “Bank” means any bank, banking company or society referred to in #(i) to (iv) of rule 6DD(a) and includes any bank [not being a banking company as defined in section 5(c) of the Banking Regulation Act, 1949], whether incorporated or not, which is established outside India. Adjustment in books Rule 6DD(d)- Where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee. Purchase of certain products Rule 6DD(e):Where the payment is made for the purchase of - (i) agricultural or forest produce; or (ii) the produce of animal husbandry (including livestock, meat, hides and skins)***** or dairy or poultry farming; or (iii) fish or fish products; or (iv) the products of horticulture or apiculture, to the cultivator, grower or producer of such articles, produce or products. Cottage industry Rule 6DD(f)- Where the payment is made for the purchase of the products manufactured or processed without the aid of power in a cottage industry, to the producer of such products. No bank service Rule 6DD(g) - Where the payment is made in a village or town, which on the date of such payment is not served by any bank,to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town. Note: “Bank” means any bank, banking company or society referred to in #(i) to (iv) of rule 6DD(a) and includes any bank [not being a banking company as defined in section 5(c) of the Banking Regulation Act, 1949], whether incorporated or not, which is established outside India. Terminal benefit to employee - Rule 6DD(h) Where any payment is made to an employee of the assessee or the heir of any such employee, on or in connection with the retirement, retrenchment, resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed Rs. 50,000. Temporary posting of employee - Rule 6DD(i) Where the payment is made by an assessee by way of salary to his employee after deducting the income-tax from salary as per section 192, and when such employee (i) is temporarily posted for a continuous period of 15 days or more in a place other than his normal place of duty or on a ship; and (ii) does not maintain any account in any bank at such place or ship. Bank closed - Rule 6DD(j) Where the payment was required to be made on a day on which the banks were closed either on account of holiday or strike. Payment to agent Rule 6DD(k)- Where the payment is made by any person to his agent who is required to make payment in cash for goods or services on behalf of such person. Foreign currency Rule 6DD(l)- Where the payment is made by an authorised dealer or a money changer against purchase of foreign currency or travelers cheques in the normal course of his business. Note: “Authorised dealer” or “money changer” means a person authorised as an authorised dealer or a money changer to deal in foreign currency or foreign exchange under any law for the time being in force 


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IT professional Studying Law

:} sums it all. good research. cheers

 
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IT professional Studying Law

:) i was wrong in thinking that you only followed R sa**nt

 
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Advocate

    

 
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Advocate

The allegation of the opposite party is that B had given you in cash of Rs.6 lakhs on two occasions of Rs.3 lakhs each and to prove this fact, the eye witness A has been produced with B's capital account statement.  Now two important questions arise.  First, at the start of their evidence, whether they filed the "list of witnesses" or not.  If they have not filed you should have demanded for that at the beginning of their evidence.  Next, if they filed in "list of witnesses", whether B's name is mentioned or not?  You must carefully should go through this particular fact.  If B's name is not there, you should put best efforts not to allow B at the later stage, even aftery they file application.

There is a golden principle in evidence Act.  The party is supposed to produce the 'best possible evidence'.  In this case, if the party wants to prove its allegation, it should have produced 'B' instead of 'A' in the witness box, as he allegedly paid you the cash and also that Account statement belongs to him.  If 'B' is not in a position to be available to the court due to his death or such similar reason, then only 'A' as a witness can become competent witness in respect of such particular fact and  say what he said and can produce the document what he produced.  So, in your cross examination, three pronged approach has to be adopted.  First irrelevance of A's presence to prove the alleged incident happened between B and you and next producing the supposed Account statement of B, that too computer generated.  This very documents comes under very severe question as the signature on the document has to be proved and A is not competent to prove the signature and the validity of the document ( if you put proper questions) goes into thin air.  Now, appropriate positive and negative suggestions have to be given to A in the cross examination (you consult your advocate and suggestion are required to put forth your case at the time of his cross examination and missing to ask appropriate suggestive questions may be detrimental to your case.  In these suggestive questions, the importance of payment of money worth more than Rs.20,000/- shall be in the nature of cheque/D.D. etc. should be asked.  Now, the very important question - whether you should call for the records of B, like balance sheet, his bank statement etc.  Legally, you have got a right to do so, but it is not necessary, if you get appropriate answers to your cross examination questions.  The burden of proving that dowry was paid to you lie on the opposite party.  Hence, it is their responsibility to produce such documentary evidence to the satisfaction of the court.  If they have not done, they have to face the consequences.  Hence, your question to A shall be - "Have you filed balance sheet of B to prove your statement".  His answer will be "no".  Again in the place of balance sheet, you put 'bank statement' and ask the similar question and get the same answer.  After putting such questions, finally you put such suggestive question - "As B has never paid me the cash of RS.6 lakhs and as those documents prove your lies, you have not filed the same".  His answer will be "no".  But at the time of arguments, the judge will read this statement in your favour by coming to the conclusion that non-filing of the relevant documents by the opposite party proves your innocence.  One more facet for this entire episode.  On some occasions,  it will be possible that dowry could be given in cash, if bridegroom demands, but the provenance (origin) of  such cash cannot be from thin air.  The B has to prove that how this cash has come into his hand.  The transaction  has to be shown by which, the court shall derive the fact that he had cash in hand of Rs.3 lakhs each on those particular dates or proximity of those days.   If he had received it through some friend, he had to show such transactin or by selling some property he got it, he has to show such sale transaction.   Finally, note that after opposite party's evidence will be over, you will get ample opportunity and time to go through their examnation and having thorough discussion, you can call for such record of D, what you think necessary, at the time your evidence.  (Personally I do not think such situation will arise)  (I gave this reply thinking that opposite party is petitioner and you are respondent.  


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zz

@ Fight for justice & Stanley!

Thanx for elaborating on Section 40A(3)(a) of the Income-tax Act, 1961. What I cud gather is – I fall in the category of RELATIVE. So opp party is not wrong acc to  if they gave total 6 lac on 2 dates, as cash to me? Otherwise, they wud have paid it in CHK/Draft.

Am I right?

Anybody having insight into bankers book evidence act 1891 also & its applicability in my case?

 
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