Giving relief to housewives regarding income tax, the government has said that the amount deposited by housewives after demonetisation up to Rs 2.5 lakh will not come under the purview of Income Tax Investigation. The Income Tax Appellate Tribunal (ITAT) has held that such deposits cannot be treated as income.
What’s the matter?
Uma Agarwal, a housewife from Gwalior, had declared a total income of Rs 1,30,810 in her income return for 2016-17, while she deposited Rs 2.11 lakh in cash in her bank account after demonetisation. This amount was demanded by the Income Tax Department and income tax on it. Thereafter, the woman approached the Income Tax Appellate Tribunal.
Aggarwal told that she had deposited this amount in the form of savings from the amount given by her husband, son, relatives for the family. The CIT (Appeals) did not accept this explanation and confirmed the order of the Assessing Officer treating the cash deposit of Rs.2.11 as unexplained money. After this Aggarwal took the matter to ITAT.
What verdict?
Judicial member Lalit Kumar and Accounts member Dr. Mitha Lal Meena at ITAT, Agra said that the amount of Rs 2,11,500 deposited by the said woman at the time of demonetisation is within the limit of Rs 2.5 lakh. Hence it cannot be considered as access income. Meaning it is not earning. Hence there will be no taxation on it.
The tribunal in its order said that the assessee has saved this amount by adding small amounts received from her husband, children and relatives. He has also given full details of it. There is no shame in accepting it. Therefore, no tax authority can collect tax on it.
Exemption will be given on deposits up to Rs 2.5 lakh
while giving exemption to women who deposited up to Rs 2.50 lakh during demonetisation, ITAT said that we clarify that this decision has been taken by housewives during demonetisation 2016 to deposit cash up to the limit of Rs 2.5 lakh. An example can be considered in relation to the action to be taken.
