LatestIncome Tax 7 October 2026
Man Deposits Rs 85.3 Lakh Cash Gifts, Tax Dept Sends Notice
A Chennai resident deposited Rs 85.3 lakh received as cash gifts from his wife and relatives, prompting the Income Tax department to label the transaction as unexplained under the Specified Financial Transactions (SFT) rules. The department issued a notice seeking clarification, while the Income Tax Appellate Tribunal in Chennai accepted the gift deeds and granted relief, highlighting a split in interpretation of tax obligations on large cash gifts.
A man in Chennai deposited Rs 85.3 lakh cash that he received as gifts from his wife and other relatives. Under the Income Tax Act, banks must flag large cash deposits as Specified Financial Transactions (SFT), and the tax department has now called the deposit unexplained.
- Notice issued: The department sent a formal notice asking for details and documentation of the gifts.
- Legal twist: The Income Tax Appellate Tribunal (ITAT) in Chennai accepted the gift deeds and provided relief, showing differing views on tax treatment of large cash gifts.
For the full story, see the Times of India article.
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