Education expences

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2012 Dear sir,
My son is going to abroad for study. Thereon, the cost of exp. would be about 37 lacs, wherein 9 lacs are provided by my relatives through cheques in favour of my bank a/c, and 8 lacs are borne by myself from my savings and 20 lacs are arranged from the sell of a plot. Please advise me, the what things should to take into consideration in respect of above mentioned transactions, during the filing of ITR4 in AY 2012-13 .
Thanks and regards.

Yogesh Agarwal

Yogesh Agarwal (Expert)
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26 March 2012 I think two things to be considered namely:

1st: The amount received from your relative is in the nature of what? if it is in the nature of gift then ensure relative is coming in the explanation provided under section 56 so as to avoid taxability of the same.

2nd: So far Rs20 lacs is concerned please ensure that the capital gain (if any) has been rightly calculated.

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2012 the amount received from relatives are taken as interest free loan. Then what would be my tax liability?

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Yogesh Agarwal

Yogesh Agarwal (Expert)
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27 March 2012 There is no tax liability in your hand for loan taken...also you are paying interest not receiving..so dont worry..there is no tax liability in your hand in this regard..