ITR
133(6) notice about mutual fund and share purchases
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Mutual funds and companies report large investments in AIS. The officer wants to know the source of the money and whether income from the investments was reported. Bank statements and the investment statement usually answer it.
Provisions and law
- Sec 133(6) (now Sec 252(1)(a))The officer can call for information useful for or relevant to any enquiry or proceeding
- Sec 69 (now Sec 103)Unexplained investments can be taxed as income if the source is not explained
Analysis
Show the bank account from which each SIP or lump sum was paid and link it to salary, business income or redemption of earlier investments. If you switched funds, the 'purchase' may only be a reinvestment, which you should point out. Also confirm that any redemption gains and dividends were reported in the return. A neat table of date, fund, amount and source account is usually enough.
Conclusion
- Download the consolidated account statement for the year.
- Link each investment to a bank debit and its source.
- Point out switches and reinvestments.
- Confirm gains and dividends were reported, then reply.
A Savvy can do this for you
Call for information, Sec 133(6) (now 252(1)(a))
₹999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.