Impact of taxation on this transaction
This query is : Resolved
22 September 2011
suppose if Mr. A transfer Rs 20lacs from his bank account to his brother who is engaged in business of construction, so what will be the effect of this transaction?
whether this funds transfer can be shown as a gift, or this has to be shown as loan in balance sheet of his brother
whether the income earned by his brother on rs 20 lacs need to be clubbed???
whether this funds transfer can be shown as a gift, or this has to be shown as loan in balance sheet of his brother
whether the income earned by his brother on rs 20 lacs need to be clubbed???
22 September 2011
Dear Anshul
The transaction will be treated as Loan (unsecured).
The transferor may get the Interest on such loan max. @12% and no other income will be clubbed.
Further these transaction is not in the nature of gift hence question of gift does not arise as it is not supported by gift deed.
The transaction will be treated as Loan (unsecured).
The transferor may get the Interest on such loan max. @12% and no other income will be clubbed.
Further these transaction is not in the nature of gift hence question of gift does not arise as it is not supported by gift deed.
23 September 2011
I agree with the expert
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- SEC 54 OF IT ACT
- Is Aadhar PAN linking required for opening bank account?
- Form 26QB for TDS on property
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Where to show the RCM on Rent paid to unregistered landlord
- RCM - commercial rent paid to URP under GST
- BLOCKED-INELIGIBLE GST CREDIT
- Amendment of September 2021 Invoice
- GST Annual Returns filing due date
- Residential status for filling income tax returns in India
- Strategic Performance Management and Business Valuation
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
