I work for a college. It is run by a trust and so we did not have a bank account with netbanking facility. And during the pandemic I transferred the staff salaries by to the staff accounts by first transferring the lumpsum amount from the college account to my personal account (with netbanking) and then transferred salaries from my account to the staff accounts.
My query is whether I will be liable to pay income tax due to this transaction.
My query is whether I will be liable to pay income tax due to this transaction.
You are not liable to pay tax on the transaction as you were acting as an agent of the college due to extraordinary circumstances.
However, you better get it documented it properly.
In any case, you can expect query, notice or show-cause from the income tax department on the matter, so take the help of your trust's CA to be ready with the replies and justifications.
From India, Mumbai
2358However, you better get it documented it properly.
In any case, you can expect query, notice or show-cause from the income tax department on the matter, so take the help of your trust's CA to be ready with the replies and justifications.
From India, Mumbai
Unusual and large transactions get reported by Banks as a routine.
Avoid mixing up official and personal transactions.
Best is open a separate bank account and deal college transactions only throught this account.
Question of IT for the transaction does not arise,but queries may arise as to nature of transaction.
From India, Pune
Avoid mixing up official and personal transactions.
Best is open a separate bank account and deal college transactions only throught this account.
Question of IT for the transaction does not arise,but queries may arise as to nature of transaction.
From India, Pune
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
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