Man deposits Rs 85.3 lakh given to him as cash gifts, gets notice; ITAT gives relief
The Income Tax Appellate Tribunal (ITAT) in Chennai provided relief to a man who received tax notices after depositing Rs 85.03 lakh in cash gifts from relatives. The tribunal ruled in his favor after he substantiated the gifts with legal deeds and donor documentation.
Why it matters
This case clarifies the legal requirements for documenting large cash gifts to avoid being flagged for unexplained income by tax authorities.
You get a lot of gifts in the form of cash and you deposit the amount in your bank account. But, what if the Income Tax Department treats them as unexplained income and sends you a notice.In one such case in Chennai, a man received cash gifts of Rs 85.03 lakh from his relatives. After learning of this the Income Tax Department sent notices to the man and his relatives. The man eventually won relief in ITAT Chennai.What the case is aboutIn this case the man who received the cash gifts formalised the transactions through gift deeds and deposited the money into his bank account.
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