Clubbing of income – other options legally

Forums Tax Filing Clubbing of income – other options legally

Clubbing of income – other options legally

I have invested FDs ( 20 lacs ) in my spouse name and she got IT notice of non filling of IT returns ( probably got hit > 20 lacs check ). Now I have decided to mention the FDs investment had received as cash gift from her dad to avoid clubbing of income. I hope it suffice. Will IT ask for proof of this cash transaction. Do you ppl have any experience how ‘CPC – Insight’ works say after submit how the process will be?… say manual or automated etc ?…. Also, for the queries on MF investments, I will be mentioning my PAN number as source. P.S: I pay tax of 6 lacs p.a which I feel enough for this bad govt who never provides basic infra to this country and damn care about farmers etc. Plz excuse me.

Profile photo of sunil Asked By: sunil 2 replies 2 helpful answers Last Updated: 3 weeks, 6 days ago
  • Profile photo of sunilsunil
    Participant

    I have invested FDs ( 20 lacs ) in my spouse name and she got IT notice of non filling of IT returns ( probably got hit > 20 lacs check ). Now I have decided to mention the FDs investment had received as cash gift from her dad to avoid clubbing of income. I hope it suffice. Will IT ask for proof of this cash transaction. Do you ppl have any experience how ‘CPC – Insight’ works say after submit how the process will be?… say manual or automated etc ?…. Also, for the queries on MF investments, I will be mentioning my PAN number as source. P.S: I pay tax of 6 lacs p.a which I feel enough for this bad govt who never provides basic infra to this country and damn care about farmers etc. Plz excuse me.

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    Any tax notice should be dealt with very carefully. You cannot simply say that it is received from her father especially in cash.

    If you say it was in cash the next question is when you deposited in her account? And probably an account statement will show a different story.

    Also if you say it is from her father then, in that case, her father should be able to explain the source of such amount. If he is not able to explain then he may land up in trouble.

    So be careful in your response. You can read more about different tax notices on https://www.hrblock.in/guides/types-income-tax-notices/

    If need, please seek a professional help.

  • Profile photo of Nitesh BindNitesh Bind
    Participant

    If you have already received a notice against such FD then you have to be very careful with its answer and every aspect needs to be carefully analyzed. If you say that your Father in law has given the amount for the FD then he may be asked to clarify the same. If all the transactions are not substantiated then officer may levy the penalty for misreporting as well. In my opinion one simplest way is to Accept the source of income and said that it was unwilling mistake and then file the return of your wife and revise your return with the income on FD clubbed in your income. Another solution is to find any good CA who has link in the department then he would certainly be able to convince the Assessing Officer as per your need.

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