The retirement amount of Government/State Government Employee is comes in heavy amount and it directly transfer to Employee Account. Although, the employee is taxpayee. But after retirement the huge amount credited in his account and thus it is Words of Caution that one precaution normally every tax payer should take. As far as possible, have a transaction by account payee cheques/instruments only. There is a penal consequences under section 269SS of the Income Tax Act-1961 if any person accepts the loan or deposits of Rs. 20,000/- or more otherwise than by an account payee instruments. Even amongst the family members the loan of Rs. 20,000/- or more in cash is prohibited.
In normal course, cash deposits are a matter of investigations & no special inquiry is carried out for the cash withdrawals. In the some specific case, there is nothing to worry or bother as source of fund is explainable. The withdrawals could be treated either in the capacity of an agent acting on behalf retired Employee for heavy transactions that could be treated as gift received. For the genuine transactions, the assessee should not get panic. The Income Tax Department in general is an assessee friendly.
In normal course, cash deposits are a matter of investigations & no special inquiry is carried out for the cash withdrawals. In the some specific case, there is nothing to worry or bother as source of fund is explainable. The withdrawals could be treated either in the capacity of an agent acting on behalf retired Employee for heavy transactions that could be treated as gift received. For the genuine transactions, the assessee should not get panic. The Income Tax Department in general is an assessee friendly.
