Tax Saving

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.

asked Aug 12 '11 at 17:39 by V Anand123 1334

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.

answered Aug 15 '11 at 19:42 by Pankaj Batra 5.2k320

Thanks a lot for clearing the doubt.
(Aug 16 '11 at 15:05) V Anand123

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.

answered Aug 16 '11 at 20:35 by Gurukul 1872916


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Aug 12 '11 at 17:39

Seen: 2,386 times

Last updated: Aug 16 '11 at 20:35