On hearing the name of income tax notice, the condition of the good gets worse. In such a situation, what if notices are being sent to the children by the Income Tax Department. This has happened in reality, let’s tell the whole matter.
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Once a good person gets a shock on getting a notice from the Income Tax Department. On the other hand, if this notice reaches a family in the name of its child, then there is every possibility of the situation becoming more serious. But recently many children have received notices from the Income Tax Department. After all, what is this whole matter, let us know…
The Income Tax Department has recently issued notices in the name of many children and minors across the country. In fact, in all these cases, the parents of the children had opened bank accounts in their names. Money was sent abroad from this account.
The matter is related to investment abroad
Many influential people of India are using such accounts to buy properties abroad, invest in shares and operate bank accounts. He is transferring money from bank accounts opened in the name of his children or minors. In this, he is also getting help from the Liberalized Remittance Scheme of the Reserve Bank of India (RBI). What is LRS scheme of RBI.
Can send abroad up to 2.5 lakh dollars
In the LRS scheme, a person can also send money abroad using the bank account of his family members. This also includes accounts opened in the name of children. This rule has been made to avoid regulatory hassles.
Under the LRS scheme, a person can send only a maximum of $ 2.5 lakh (about Rs 2.06 crore) abroad in a year. This amount can be sent by combining all the bank accounts of all the family members.
Despite the scheme of RBI, how did the notice come?
Now a question must have arisen in your mind that when the scheme is of RBI, then why people are getting income tax notices, that too regarding transactions in accounts opened in the name of children. Let’s understand this too.
RBI has prepared a list of foreign assets on which investment can be made by doing such transactions. The Income Tax Department’s eye on these foreign investments is crooked when a person does not give information about such investments in his annual income tax return.
Now children or minors do not have any independent income directly. In such a situation, no income tax return is filed on his PAN number. Therefore, regarding these notices, experts say that the Income Tax Department may just want to find out through them whether the parents of the children have given information about these transactions in their income tax return or not…
Individuals in India are required to disclose their investments in foreign bank accounts and properties in their income tax return forms. There is a provision of fine up to Rs 10 lakh for not doing so.
