Income Tax on cash of 2000000
I am a salaried employee with an annual salar betwen 5 to 10 lac per annum.
My cousin(Chacha's son) wants to deposit a cheque of 20, 00, 000 in my account.
He is saying that he would with take it from me later.
I have few queries :
If I take it from him and return it later,
Am I liable to pay IT on it?
Thanks in advance.
The amount involved is not a small amount.
Lets have a look at requirement of Income Tax department from Banks:
Transaction of more than 100,000 lakh in a day or transaction of more than 10,00,000 in a year in saving account need to be reported in Annual Information Report (AIR).
Since amount involved meets both the requirement, your details will be sent to income tax department.
The best solution available as per me is:
Ask you cousin to deposit money in his bank account and then take the cheque of 20,00,000. Once cheque is received, execute an agreement of interest free loan.
The money can be received as loan from your cousin, dont accept in cash.
Also without agreement provision of money laundering act may cause a problem.