10 December 2015
sir my query is one of my friend cash deposited in my saving account Rs.600000/- for his VISA purpose , next day i have trf to my friend account , for this transtion i have pay income tax please help me
10 December 2015
In normal practice for VISA application everyone has to do this type of transaction and everybody knows about it. So, I don't think practically there is problem in this transaction.
If you are telling that this transaction create problem in future the suggest a way for him as per law.
10 December 2015
see the problem. Yes, for VISA application, people do this. But the way to do it is to get the money through RTGS/NEFT/cheque.
If you say it is a loan, then you are automatically violating 269SS. If you say it is gift, it becomes tazable. The simple way to deal to show the money received as income and then show return of money as sales return itself. that way there is no income-tax angle including disallowance for cash expense as no expense would be claimed by anyone.
Assuming the persons are not in business, it wont even entail service tax implications.
10 December 2015
well, even if question is raised, Income-tax can't question it under any particular section of the income-tax act as long as proper disclosures are made. If you say I received Rs 6 lakhs as service income, that won't invoke 44AA, 44AB. So no books are required. Since you returned all money, it wont be taxable.
CAclubindia
