Should you disclose a deposit of less than Rs 2 lakh during demonetisation in your ITR?

Should you disclose a deposit of less than Rs 2 lakh during demonetisation in your ITR ?

In part E of the tax return form that seeks other information from assesses including bank details, another column has been added seeking details of cash deposited between November 9 and December 30, 2016 i.e. during demonetisation if the aggregate amount was Rs 2 lakh or more. I had deposited Rs 1 lakh during that period. Do I need to disclose anything?

As you have deposited only Rs 1 lakh, you are not required to give details of the cash deposited during the period November 9 December 30, 2016. An obligation is to disclose the amount of cash deposited only if the aggregate amount is Rs 2 lakh or more.

In order to save tax can I transfer about Rs 60,000 to my wife who has no income. I ama salaried individual in the 20% tax bracket.

At the time when you gift Rs 60,000 to your wife, there is no liability for payment of any tax either by you or your wife.However, as per provisions of Section 64(1)(iv), the income of your wife from the investments of Rs 60,000 will be included in your total income and you will be liable to pay tax on the said income.

In the light of draft notification issued under the third provision to the clause (38) of section 10 of the Income ­tax Act,1961, kindly advise on the applicability of tax on capital gains in the following circumstance. My mother ­in­ law, who was entitled to purchase the rights issue shares of Wheels India in 2014 transferred it to me (for nil consideration) and accordingly .

I paid the money for the rights to the company. Will then issued the rights shares to me in March 2014.Now I wish to sell these shares.Would I be exempt from capital gains tax considering these were held for more than 12 months and will be sold through stock exchange and STT will be paid on sale? Or will I be charged tax (rate ?) considering that the shares were purchased in an “ off­ market transaction“ directly from the company and possibly no STT was paid then?

The government has issued draft notification and representation have been made.The final notification is pending. The legal positionregarding the application of Section 10(38) is not yet crystallised.I suggest that you should wait till the final notification is issued givingclarification on various issues including the purchase of shares through the rights issue by the company

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