I work for a college. It is run by a trust, so we did not have a bank account with netbanking facility. During the pandemic, I transferred the staff salaries to their accounts by first moving the lump sum amount from the college account to my personal account (with netbanking) and then transferring the salaries from my account to the staff accounts.
My query is whether I will be liable to pay income tax due to this transaction.
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My query is whether I will be liable to pay income tax due to this transaction.
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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 properly.
In any case, you can expect a 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
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2638In any case, you can expect a 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
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Unusual and large transactions get reported by banks as a routine. Avoid mixing up official and personal transactions. The best approach is to open a separate bank account and conduct college transactions only through this account. The question of IT for the transaction does not arise, but queries may arise regarding the nature of the transaction.
From India, Pune
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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
Income Tax Calculator.xls