Can Person A deposit 1.80 lakh cash in Person B's SBI account; if person B has no Pan card. Since it is less than 1.80 lakh, is it taxable?
What if person A deposit 49K per day till 4 continuous day to become 1.80 lakh? Is tax applicable in this case? Should person B have to file IT return for that?
Note: Person B is an unemployed person having income through agriculture and other sources, but not valid income proof to show.
Seeking your response. Thanks in advance.
For deposit above 50,000 in cash, PAN card number has to be mentioned on deposit slip mandatorily.
If the amount is split and then deposited, still there will be income tax payable if the amount has been deposited by a person which is not relative.
Gift tax applies to this case if person A and B are not relatives.
Avoid depositing cash as it may spoil the tax exemption in case of relatives.
Thanks a lot for clearing the doubt.
You can deposit/transfer money to Person B's account whenever/however you like. But if that money starts generating income (by way of interest, investments, etc) then that income will be treated as yours and will be taxable as per the prevailing tax slabs.
Hope that clears some of your doubts.
