Hi, I have paid a total sum of Rs. Seven lakhs (in installments) from my salary account in Fy 2011-2012 for a land deal which failed due to some reasons. TDS applicable on the salary for FY 2011-2012 has been deducted and deposited by the employer. Now the person concerned wants to pay back the amount in qestion i.e. seven Lakhs (In installment) by cheque in current FY i.e. 2012-2013. Can I deposit that cheque in my salary account. If yes, whether the said amount has to be declared to any authority and/or if any tax is liable on the said amount in current FY. Please reply.
1 Answers
There should not be an issue with this transaction. You can deposit amount back to your account through cheque.
In case income tax department sends you notice to declare source of these funds, you can give them reasons in writings along with attached bank statement for installment payments earlier.
This may also be shown as loan payment and then return of same. You may get this written on a plain paper signed by both parties involved.
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