Women may not be working, yet the money left with them will be considered as their own earnings. An Appellate Tribunal (ITAT) Bench of the Income Tax Department has given such a decision. This decision not only legitimizes the savings of Rs 2.5 lakh to the women of the household, but also gives respect to the household chores of the women. This bench has observed that women struggle a lot to save every single penny. To save every penny, she bargains with the shops, many times she goes on foot to get the goods by rickshaw. In such a situation, if he saves up to Rs 2.5 lakh in his year, then his extra income cannot be considered. Hence such women are entitled to income tax exemption of Rs 2.5 lakh.
First know what is the whole matter
This case is from Agra. After demonetisation in the year 2016, a domestic woman had deposited old Rs 500 and Rs 1000 notes of Rs 2,11,500 in her bank account. The woman had told this money as her own. When the woman deposited this money in the bank, the Income Tax Department considered it as additional income. Later demanded income tax on these money. After this order of the Income Tax Department, the woman went to the Income Tax Appellate Tribunal. A bench of the Income Tax Appellate Tribunal (ITAT) at Agra has observed that women save some money while running the household. Along with this, she also gets some money from her husband. Along with this, children also get money from relatives who come home. This money is also considered to be the savings of the woman. In such a situation, the income tax department cannot declare the amount saved in this way as the income of that woman.
ITAT gave the decision
Judicial member Lalit Kumar and Accounts member Dr. Meetha Lal Meena in Agra-based ITAT, after hearing the whole matter, 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 additional income. Therefore, tax cannot be levied on it. According to the order of the tribunal, the woman has saved this amount by adding small amounts received from her husband, children and relatives. Its full details are also given in the income tax return. As such, it cannot be ruled out. Therefore, income tax cannot be charged on this.
know what else said
The Bench observed that in this case it cannot be said that the woman had no source of income. The housewife has been doing many financial works in the family over the years. The Bench said that even if we set aside this detail for the sake of argument, the Assessing Officer would have to give strong evidence that the amount deposited in the bank was undisclosed income. It was earned through some business or other means. No evidence has been given by the authority in this regard. In such a situation, this income belongs to the woman only, on which no tax can be levied.
Know interesting facts of the case
During the hearing in this case, interesting things came to light about the women of the house. During this it was said that women have many responsibilities to run the household. Hundreds of household chores have to be done every day. His work starts in the morning and continues till late evening. Meanwhile, she takes ration, buys milk-egg-bread. Buys fruits and vegetables. If something goes wrong, get a plumber and an electrician to do the work. By bargaining in this type of work, they save some money. If a relative comes or goes somewhere, the children or they get some cash money. It is also put in the piggy bank itself. In this way, a housewife saves not only thousands but also one or two lakh rupees.
