How to show my interest income which I received in cash

I my relative borrow 20lakh from me with the interest rate of 1% per month. So every year he gave me 240000 as interest. I paid via cheque as all my money is in bank. After this demonetization and knowing about the black money problem I get to know the money he was giving me considered as black money as he was giving me by cash. Now I have taken my money back and total interest I got is is 450000. So my question is: 1) how much can I pay tax on this and make it white money, 2) I got 240000 each year and if I deposit 450000 at once how the tax is calculated? My only purpose is to very less cash or no cash at home because I don't want any problem in future?

Jul 7, 2017 by Dipa A, Gujrat  |   Taxation

Any income that you receive in form of cash or cheque is taxable and you must show it in your income tax return (ITR).

In this case the interest income received is taxable and will be taxed according to the tax slab applicable to you. You must consult a tax advisor and file your income tax returns, if not filed already.

Thanks for writing to Advisorkhoj.

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