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POSTED BY ON August 30, 2013 2:54 pm COMMENTS (9)
I have inherited a large sum of amount in cash from my deceased father, years ago. Actually they are not black money. It was just that my father used to have most of his money in a safety vault at home, just because of lack of financial planning, just like me.
Now, I want that amount to be in bank account for safety of my mother who used to stay alone there. How do I proceed in safe manner. Main part is how would I show it’s source (As it is a plain cash)
Any idea?
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Deposit in my account
Keeping cash @ is a worst idea. few things i would say you can do
1. Buy Property (But not possible in cities as there is many LAWS when you deal with cash)
2. Open business and show all these are as profit definitely you will pay little interest but at-least you can use this money as a king end of the day
3.Buy Gold Coins, Mutual funds, Govt Bonds, costly shares for long term (Investment part is done)
There are many things but need to how much CASH is there
As always thank you for reading
Regards
1. Do not put in the bank. Put it in a safe vault at home and keep on spending that during your whole life.
2. Buy a property; the builder will be happy to receive the cash.
3. Buy gold and keep in bank locker.
4. Open 10 bank accounts and divide the amount.
Usually when a person has loads of cash and when he cannot deposit the same in the bank account – people usually keep this amount in a bank locker.
In your case, had you deposited the amount at the time when your father expired, it would have been much easier for you to prove that this amount is white money
However, the longer the time gap, the higher would be the suspicion for the source of such cash.
Dear Viral, are you having financial transaction details supported by your late Father’s bank statements? If the answer is yes, please do not worry at all & deposit the amount into the Bank account of your mother. As rightly pointed out by dear Manish, more clarity from you is required to pin point a solution.
Thanks
Ashal
The problem is to show that its WHITE . the moment you deposit it in branch , A big credit Entry would clearly be visible and Almost for sure, you will get a notification from IT dept to explain what money was it .
When you say it was your fathers money , this does not solve the issue, because its still not clear if its WHITE OR BLACK . So your father IT Returns would be needed to show . That I am not sure will be possible or not .
Put more info on this to comment more . Is the money to be deposited in mothers account or fathers ?
Manish
To Manish Sir’s question Whether I put it in my mother’s account or mine; both of us falls in 10% income tax slab. She is getting pension on behalf of my father’s job. So, I guess that will not make much difference.
To CA Karan Batra – I don’t think we can keep cash in Bank Locker. A banker told me that. He also said that, people does keep it there. But it may go wrong and you can lose all your money.
Dear Viral, the banker has told you the right thing. Bank lockers are not allowed to use for keeping your cash money. This is clearly written in your lociker agreement as well as your bank branch can share with you the exact notifications & circulars on the same.
What about my own counter query to you?
Please do not opt any fancy way as suggested, like opening multiple bank accounts or gifting.
Thanks
Ashal
Hi Manish,
I think there are some ways to escape tax. Money received from agriculture farming is tax free in India.
Dear Viral D, Please refer this page. “http://jagoinvestor.dev.diginnovators.site/2013/03/income-tax-on-gifts-received.html”. There you can find 5 rules. They may be useful to your situation.
From 1st rule, you don’t need to pay tax upto 50K money received from any person.
From 2nd rule, you can make entire money as white. But here you have to convince your relatives (Spouse, Brother, Sister, Spouse sister or Brother….. etc).
I am confused about 3rd and 5th rule. So Manish can give you a good about that.
Thanks,
Sekhar