Bank deposit with/without PAN attractingTAX?

POSTED BY Naveen ON October 28, 2013 1:44 pm COMMENTS (4)

Hi,

I’m following Jagoinvester from last two years, I have made some very good decisions while taking Insurances and following for all my financial doubts. It is really very helpful. I thank and appreciate the organisers and helpers.

Here is my query:

I’m a software engineer and my wife is home maker. As per my financial plans, I have a target to buy land/house. Now a days most of the sellers are asking some considerable amount of liquid cash(40%) along with home loan(60%). To have more liquid cash, I choose chits as medium.

When I pay chit EMI’s, I pay them directly from my salary account to Chit Organizer, but when I take final chit amount he is paying me by cash. I want to deposit that cash in my wife’s savings account to make term deposits so that the interest generated will attract less/no tax as my wife has no income. Now the questions are:

1. Is it legal even if I deposit more then 50,000 in my wife’s account with her PAN? Will it be questioned by IT? or will that cash attract any tax?

2. Will it be ok, if I deposit less then 50,000 every time?

Thanks in advance!

Naveen

4 replies on this article “Bank deposit with/without PAN attractingTAX?”

  1. ashalanshu says:

    Dear Naveen, the excess amount received in your CHIT, over your basic investment is your taxable income and you need to pay Tax on it on your own.

    Thanks

    Ashal

  2. Naveen says:

    oh, sorry I did not get your first statement. “the amount received from Chits is tax paid? or taxable?”

  3. Naveen says:

    I’m not talking about black amount. If I take land, I may get loan of only 60% of land values/market value. I should have rest of the 40%.

  4. ashalanshu says:

    Dear Naveen, no matter what modus operandi you use, the amount received from Chits is your own money and taxable in your name.

    I’m unable to understand, why are you hell bent to purchase a property with 40% black amount. I w’d prefer a 100% clean property.

    Thanks

    Ashal

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