I am a retired Indian Army regiment since January 2014. As of 1/1/2018, I have Rupees 18 lakhs in my bank account out of which Rs 14 lakhs was given to me by my grandfather as a gift in june 2014 by selling their ancestral property.
Since I was only receiving a pension of Rs 12000 pm I didnt file my ITR for that period. And now I am thinking I may receive a notice from the Income tax authorities. I have few questions kindly respond to them
Q1 What document is valid proof that will convince the IT authorities that I had actually received such gift from my grandfather.
Q2 . I currently have the affidavit from my grandfather stating such fact, will it suffice?
Q3 When I login to incometaxindiaefiling.gov.in it shows that Income tax not filled for AY 2014/15. And it says you have deposited more than 10 lakhs rupees.
Q4. Is there any provision to file late income tax return.
Q5. That money was gift which is tax exempt. So if I can prove it, will the department pose any penalty for not filing return in time?
Jan. 05, 2018
To answer your questions one by one: 1. The best and probably the only valid document is a duly notarized gift deed. 2. No, an affidavit won't be sufficient, you will need a gift deed. 3. Do not worry, just respond to the notice saying it is a gift from grandparents and that it is an exempt income. Make sure you have your gift deed ready by this time. 4. No, you can not file a belated Income tax Return online, that ship has sailed. But you can arrange a meetup with the Assessing officer and see if you can file the return offline. 5. No, if you prove it, you won't have to pay any penalty or fees for that matter.