Advice re ITO Notice
8 months ago
Dear Sir
During FY 2017-18, I used to withdraw bank FDRs (instead of auto renew) opened in earlier FY and then open fresh FDRs.
In between, there were few to & fro transfers between my & my mother account.
But ITO is treating cumulative value of FDRs and saying FDRs worth Rs.2,77,50,000 were opened and asking for source.
I am senior citizen, have no income or money except for interest income from all life’s savings & investments by me (engineer) and my wife (MBBS doctor). In addition, We had a house property, which we sold in 2012 for Rs.85 lakh and capital gain of Rs.74 lakh was invested in REC bonds that matured in 2015. In addition, all money we received from PPF/ LIC etc; and some money was also transferred by my mother to me after my father’s death in 2011. I consolidated all this in one bank account & put in FDRs. Bank account is in joint name of myself, my wife, our daughter. Our daughter had absolutely no income & was only joined so after our death she can have access to our money. She is not even India tax resident, holds overseas passport and during said year was in India only for 13 days during Jan/ Feb, when no transactions happened in account. Still notice is sent to daughter, not to me as prime acount holder. I had timely filed return & assessed on interest income from FDRs.
ITO issued notice to my daughter u/s 148 asking for source of FDRs & filing return. I replied as above and sent bank & funds flow statement. I also filed daughter return showing zero income. However, ITO sent notice u/s 147(2) asking for source of FDRs & overseas income details & computation of income.
I am confused. What do you advise Sir? Is there anything which I am not able to understand? I need help. Have I done anything wrong? What would be your fees for above? I have records of house sale & REC bonds, but not of PPF, NSC/ P.O. RD/ LIC etc, but they were all cheque payments deposited in account, but they were all cheque payments deposited in account., much prior to subject FY.
Thanks for your advice and kind regards
The question involves financial matter and also relating to tax matters. Better contact any auditor or chartered accountant.