When Mr Amirtharaj from Mylai Ranganathan Street, Thygarayanagar (Chennai), got cash gifts totalling Rs 85.03 lakh from his relatives, he executed gift deeds and then deposited this cash in his bank account. He had no idea at that time that this would result in a tax notice from the income tax department. The gifts were stated to have been received from his wife, paternal uncles, maternal uncle, and sister’s husband, all of whom qualify as “relative” under Income tax law.
As per the Income Tax law, when someone deposits or withdraws a large amount of cash, the bank must file specified financial transaction (SFT) returns. In this case, the concerned bank also reported the transaction made by Amirtharaj to the Income Tax Department.
