Higher amount transaction: IT notice?

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One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do?

Many thanks

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

One of my friends wanted to purchase a house. He took ₹ 10 lakhs (cheque) from his fater and deposited in his own account. Since the seller wanted 10 lakh amount in cash and remaining by cheque, my friend withdrew ₹ 10 lakh cash from his account and gave it to the seller. (Of course this transaction was not dosclosed in ITR. He got home loan for the reminaing amount). This happened in the first year when he had stared earning and filing IT retunrn. And now he is afraid that he would get a notice from IT dept for such transaction. Is he really likely to get a notice? If yes, what should he do? Many thanks

Read more at: http://www.caclubindia.com/forum/afraid-of-it-notice-larger-amount-transaction-307402.asp#.VCaEwxZrgdQ

[AA DESHMUKH]

Dear Friend

Not to worry. Let him get the notice first. Mostly he will not get it. And even if he gets it, after looking to the contents of the notice we would be able to reply accordingly..

So till that time not to worry and enjoy the present....

AI Summary

Large cash transaction may not trigger an income tax notice; preserve documents and reply if a notice is issued. The text describes a large deposit and subsequent cash withdrawal tied to a house purchase that was not disclosed in the income tax return, raising concern about receiving an income tax notice; the practical advice is to retain supporting documents and await any notice because a notice is not considered highly likely, and to prepare a reply addressing the notice contents if one is received.