Shyam Ranjan (Business) 18 April 2024

Regarding deposit of cash to bank account

Hi,

We have gold ornaments which we got it from ancestrally for both myself and my wife. We both reside outside India for now and my relatives would be selling those ornaments on behalf of us to Gold Shop and they would provide us bill about the purchase and pay required GST.

The thing is they mentioned they would provide us the cash of around 2 crores along with purchase bill.

Now the question is what all documents we need to provide to deposit this large amount (2 crores) to Bank legally?

Let us know the legal ways for this.

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Quick Summary

This discussion addresses the legal requirements for depositing a large sum of cash, approximately 2 crores, into a bank account in India. The cash originates from the sale of ancestral gold ornaments by relatives on behalf of individuals residing abroad. Key documentation needed includes sale deeds for the 'jewels' (ornaments) and PAN details. It's also noted that the buyer may need to deduct tax at source (TDS) for capital gains, with penalties for non-compliance. The advice strongly recommends adhering to legal frameworks and questions the feasibility of cash transactions exceeding 2 lakhs.

3 Replies

T. Kalaiselvan, Advocate (Advocate) 18 April 2024

The sale deed selling the property (jewels) and your PAN details would need to be provided at the time of depositing this amount.

Besides the buyer would be required to deduct tax at soure towards capital gains tax as the rate appliable to the NRIs/foreign citizens.

a) The tax amount deductible must be paid to the government within seven days of any such transaction made. b) The penalty of not paying TDS on property can go up to Rs. 1 lakh under Section 271H.