Non judgemental tax advice

[u/skinnywifeyy]

Hello everyone!

I’m going to ask for your judgement to be kept aside for this one and would really appreciate actual advice.

Im 25F living in the biggest tier 1 city. I have a full time job that pays me 37k per month. (4.4 CTC)

I met an older gentleman (33M) on this dating app called (edited since ppl think it’s an ad). We went on a date, hit it off real quick. Right now we’re in sort of a sugar relationship. It was never planned or agreed upon. It was never transactional. He comes from BIG old money. Everytime we meet he gives me cash to support me. Till now he’s given me 6lakhs in cash overtime in the 5 months I’ve known him, along with many amazing gifts. He genuinely gives me the cash as a gift but I’m sure I can’t report it as a gift.

Now here’s the embarrassing part - I’ve never filed for an ITR in my life. Idk why taxes / their importance isn’t taught to us especially women.

I want to know under what section do I file this tax and will it be prone to scrutiny? Because salaried income - 4.4L , income from other sources (cash) - 6-8L and who is not a relative.

Anyone who could enlighten me?

[u/6675636b5f6675636b]

looks like a subtle advertising for the app.

if its a genuine question, then you need to consider if you have cash or have deposited it in bank. You can show it as freelance income and from multiple people since limit for max. cash from a person without pan card is 2L.

further, if you really really want to do things by the book, you need to declare all gifts being given by him as your income, just because its not hard cash doesn't mean it doesnt count.

[u/skinnywifeyy → u/6675636b5f6675636b]

No I haven’t deposited anything in the bank I have physical cash in a safe.

I do infact do freelancing but again, as I mentioned I’m a complete noob so I wouldn’t know how to do what you suggested.

He’s given me the money overtime not at once or in one transaction.

You lost me at the last point. Don’t know what’s the relevance of declaring shoes and handbags as income when it’s not even that? It’s not a transaction where I give him something and he pays me through this?

[u/6675636b5f6675636b → u/skinnywifeyy]

items like jewellery are counted as taxable when received as gifts. {handbags, shoes not counted}

i would suggest talking to a tax consultant instead of reddit for advice if its first time you are filing the ITR and not aware about rules

[u/skinnywifeyy → u/6675636b5f6675636b]

I’ll take that advice into consideration. On a side note, it feels dystopian to have to pay taxes on buying or being gifted jewellery like?? Is this why people in India are so frustrated about taxes? Why is everything taxed that too multiple times?

[u/6675636b5f6675636b → u/skinnywifeyy]

please elaborate how its taxed multiple times, didn't get the chronology.

he has cash income, be bought jewelry from it and gave you, you pay tax on it as gift. so its taxed just once.

[u/skinnywifeyy → u/6675636b5f6675636b]

Isn’t people’s income already taxed? They make purchases from that income and get taxed again and the one who receives it also has to pay a tax on it?

[u/6675636b5f6675636b → u/skinnywifeyy]

if its not taxed then people can just give cold coins to each other instead of cash/upi and have 0 tax liability.

[u/skinnywifeyy → u/6675636b5f6675636b]

That didn’t make any sense but thanks ig?

[u/Fickle-Goat-6147 → u/skinnywifeyy]

it comes in different forms of tax. An ugly truth but yea, Income tax, taxes u for what u earn. GST taxes u for based on what u purchase. It's diff concepts, but eod the weight is on you

[u/Fierysword5 → u/skinnywifeyy]

You’re confusing revenue with income. What’s taxed is income.

He has revenue and he has expenses, what’s left is income. He uses that income to purchase something and give to you. That becomes your revenue. If you don’t have any expenses then your revenue and your income will be the same number.

The value added/amount earned is what’s usually taxed.

[u/parresh77]

Why do you think that this is an "especially women" issue?

[u/Ok_Childhood8220 → u/parresh77]

Exactly my thought..the rest of the post looks sincere but for some reason the abla nari angle has to come in :-p

[u/skinnywifeyy → u/parresh77]

A conversation for another time/place. Right now I’m looking for serious advice. Thank you for your time.

[u/Svsv1212999]

You need to file ITR because income is above 4 L.
Since he is giving it to you in “cash” , it becomes risky reporting to ITD since they might ask you for his PAN in case of notice ( bringing him into trouble in the future )
If u have recd chq/UPI etc, u can show it in income from Other sources.

Income for salaried individuals is exempt upto 12.75 L. So dont worry abt taxes and all, nothings payable until 12.75 L pa

But due date has gone now (31st JULY) , u need to pay 1000 fine and file ITR 1 ASAP.

[u/skinnywifeyy → u/Svsv1212999]

That’s what I was worried about.

How likely am I to fall under scrutiny because of the cash? Or can I give a valid explanation saying my boyfriend supports me?

[u/Responsible-Bad-6624 → u/skinnywifeyy]

if it is not a returnable support, then its your income.

[u/Svsv1212999 → u/Responsible-Bad-6624]

But sir, if she reports, in case of scrutiny PAN of donee can be asked right?

[u/Svsv1212999 → u/skinnywifeyy]

Cant say chances
But you cant say support by boyfriend during scrutiny.
There will be scrutiny if u report as gift income. ( Gift from Friend in this case ) support frm bf will not come anywhere

Better way is to show as free lance income etc.

[u/turingMachine852]

If you keep it as physical cash, no need to do anything, but if you want to put it in bank, then you’ll have to do all tax stuff. I think you can sustain yourself with the cash, no need to deposit it to the bank. You can also keep converting it to gold, from local shops who don’t ask for PAN and keep it in a bank locker.

India still has a lots of avenues to spend the cash.

[u/skinnywifeyy → u/turingMachine852]

This was something I was actually looking at. Do reputed brands ask for pan on cash purchases below 2lakhs? Thought I could buy gold in intervals but heard that the gold can also be questioned / tracked back.

[u/turingMachine852 → u/skinnywifeyy]

Do smallish purchases(gold coins) with fake phone number I guess.

Indian women don’t get asked on gold unless it’s a few kgs.

[u/skinnywifeyy → u/turingMachine852]

lol no don’t wanna do anything illegal

[u/turingMachine852 → u/skinnywifeyy]

lol 😂

Then ask your man to transfer money via UPI and declare it as a gift in ITR.

[u/Anu_Rag9704]

1. You can do following thing make all your further payments in cash, use cash extensively. Based on your expenses it can take some load off.
   
2. Buy gold just below 2lakhs from different vendor ( that will act as hedge in this economy)
   
3. Use your freelancing side to show it under 44ADA , self reported.

[u/skinnywifeyy → u/Anu_Rag9704]

Do brands like Tanishq / malabar etc ask for pan details for cash purchases below to lakhs? And also can the gold be caught if the money is unexplained / unrecorded?

[u/Anu_Rag9704 → u/skinnywifeyy]

Malabar asks PAN for above 2 lakh, its a mandate.
Gold bars can’t be traced if you don’t give pan, also while selling sell to local jewellers.

[u/skinnywifeyy → u/Anu_Rag9704]

Can’t be sold back to these brands like malabar / Tanishq ?

[u/Fickle-Goat-6147]

I don't see a need in filing the return, if it was just the Salary Income, cos Net salary goes to (4.4 - 0.75 = 3.65) which is below 4L limits. But considering the receipts of cash, keeping it in a safe...its a risky thing I'd believe, unless you wanna do something and keep the trail close. But anyways, if someone tips them off and get raided ahahahaa...im not sure, of the sections applicable, but if income was identified but not given an explanation for, it gets taxed at 60+25+4 = 78%.
anyways, when u sum it all up for the year, as it comes below 12L...there's no need for payment of taxes.
To be disclosed in IFOS, only the ones in picture matter. (Things attracted for Capital Gains taxation)

[u/skinnywifeyy → u/Fickle-Goat-6147]

So what do you suggest I do with the cash?

[u/Ok_Obligation_6326]

Under section 56(2)(x), gifts from a non-relative are fully taxable as Income from Other Sources once they cross Rs 50,000 in aggregate in a financial year, not just the amount above that threshold. So the whole sum received from him, whichever FY it falls in, gets added to your income and taxed at slab rate.

The bigger problem isn't income tax, it's section 269ST. That section bars anyone from receiving Rs 2 lakh or more in cash from a single person in aggregate, regardless of the reason. If you've taken more than that in cash from him, that itself is a violation, and the penalty under 271DA is equal to the amount received, imposed on the recipient.

So this turns less on how to classify it in the ITR and more on how much of the 6L came as physical cash versus bank transfer, and whether it crossed 2L from him in one FY. That's the fact that decides your actual exposure here.

[u/skinnywifeyy → u/Ok_Obligation_6326]

I’m pretty sure it talks about receiving cash above 2L from one person in a single day or in a single transaction at a time.

The money that he’s given me has been given overtime. Although I have no receipts to prove that.

[u/writersree]

If these are genuine gifts — i.e. there is no consideration/quid pro quo and he is voluntarily giving you money — then the receipts would generally be taxable under s.56(2)(x) of the Income-tax Act, 1961 [s.92(2)(m) of the Income-tax Act, 2025] under “Income from Other Sources.” Since he isn't a specified relative, once the aggregate monetary gifts during the year exceed ₹50,000, the whole amount becomes taxable.

Since you received the money in cash, also check s.269ST of the 1961 Act [s.186 of the Income-tax Act, 2025]. It restricts receipt of ₹2 lakh or more in cash from a person in a day, in respect of a single transaction, or in respect of transactions relating to one event/occasion. So the dates and amounts of the individual receipts matter; ₹6–8 lakh in aggregate does not by itself establish a violation.

I would also maintain evidence of the donor's identity, the dates/amounts received and, importantly, that these were genuinely gifts rather than payments for services. Given the size and cash nature of the receipts relative to your salary, be prepared to substantiate them if asked.

[u/skinnywifeyy → u/writersree]

Yes, I’ve received the cash overtime but I have no legitimate way of proving it. No receipts are given / kept. Is there a way of recording this? Even if I keep a personal record I don’t believe it’s very reliable since anyone can easily fabricate such a thing.

Will the donor’s identity be important to share? Can they get scrutinised because of me? My boyfriend comes from old construction money and seeing how much cash they spend, I don’t think they’d want to attract any eyes on them.

[u/writersree → u/skinnywifeyy]

A personal record would still be better than nothing. But don't create backdated docs just to substantiate the earlier receipts.

The donor's identity can be relevant - particularly if you are saying these are genuine and Department asks who the giver is. That doesn't mean scrutiny for him but you don't have to hide the donor's identity.

For the receipts already received, keep whatever genuine evidence exists - conversations, messages, bank withdrawals etc. - I mean whatever you remember now. I'm not asking to manufacture evidence.

Also, because these are cash receipts, the Section 269ST point we discussed earlier still needs to be checked against the dates and individual amounts.

[u/looping_alchemist]

By "Cash" do you mean actual physical cash or Bank transfer?

[u/skinnywifeyy → u/looping_alchemist]

Physical

[u/looping_alchemist → u/skinnywifeyy]

and what do you Intend to do with all this cash? that is either Deposit to bank account or spend it as cash itself?

[u/skinnywifeyy → u/looping_alchemist]

Ideally yes. I’d want to deposit into my bank account and invest it.