I have client whose received some money from their son in foreign currency as a gift and the receiver (i.e. Client) returned the same to his son in their indian bank account, whether the transaction attract any income tax and whether the same is questionable under any provisions of law as time being enforceable like FEMA or else.
19 May 2012
Gift received from relatives is not taxable.
But in this case gift received in FC, it is always advisable to receive gift in money through bank. If the amount is not very big than there is not an issue. Otherwise if you have to provide sufficient explanations.
CAclubindia
