Money received from overseas
This query is : Resolved
11 December 2015
Dear Sir/Madam,
I have a question in relation to funds received from overseas. A group of friends settled in various parts of the world are planning to help their friend in India for their friends son's medical treatment. If the friend(recipient) in India receives a sizeable amount from his overseas friends, does the amount received subject to tax in India.
If it is taxable to the Indian receipient,is there any way the Indian income tax can be avoided.
An expert opinion is highly appreciated.
Thanks and regards
I have a question in relation to funds received from overseas. A group of friends settled in various parts of the world are planning to help their friend in India for their friends son's medical treatment. If the friend(recipient) in India receives a sizeable amount from his overseas friends, does the amount received subject to tax in India.
If it is taxable to the Indian receipient,is there any way the Indian income tax can be avoided.
An expert opinion is highly appreciated.
Thanks and regards
12 December 2015
It is not taxable if each person's donation not to exceed Rs.50,000.
Message likes :
1 times
12 December 2015
Dear Seetharaman,
Sorry to bother you again.
As per your clarification if each friend contribute less than 50,000,no tax is applicable irrespective of the total contributions received.
For eg:10 friends in overseas paid less than 50,000 each, the entire amount received is exempt from tax. Is that correct?
Very much confused because I read in another professional forum which says that if the value of amount(gift) received from a person or persons exceeds 50,000,then the entire gift so received is taxable.
The above made me feel that if one person contribute more than 50,000 or two people put together contribute more than 50,000,both cases are subject to tax.
Kindly clarify.
Thanks and regards
Sorry to bother you again.
As per your clarification if each friend contribute less than 50,000,no tax is applicable irrespective of the total contributions received.
For eg:10 friends in overseas paid less than 50,000 each, the entire amount received is exempt from tax. Is that correct?
Very much confused because I read in another professional forum which says that if the value of amount(gift) received from a person or persons exceeds 50,000,then the entire gift so received is taxable.
The above made me feel that if one person contribute more than 50,000 or two people put together contribute more than 50,000,both cases are subject to tax.
Kindly clarify.
Thanks and regards
12 December 2015
You are right gift is taxable if it exceeds 50,000 from one person or more than one person.
12 December 2015
Check weather the donations can be routed through an NGO.
Message likes :
1 times
12 December 2015
As per tax rule any money received from a friend living in foreign and he is sending in foreign money like dollar etc. Which is not taxable.
Any amount reeived front Indian friend in india in india rs. Is not taxable if less than 50000 total by o be or 10 friends . Otherwise all 50001 is taxable.
Regards
Any amount reeived front Indian friend in india in india rs. Is not taxable if less than 50000 total by o be or 10 friends . Otherwise all 50001 is taxable.
Regards
12 December 2015
As per tax rule any money received from a friend living in foreign and he is sending in foreign money like dollar etc. Which is not taxable.
Any amount reeived front Indian friend in india in india rs. Is not taxable if less than 50000 total by o be or 10 friends . Otherwise all 50001 is taxable.
Regards
Any amount reeived front Indian friend in india in india rs. Is not taxable if less than 50000 total by o be or 10 friends . Otherwise all 50001 is taxable.
Regards
Message likes :
1 times
13 December 2015
Gift from a friend in foreign currency exceeding Rs 50,000 is taxable.
Message likes :
1 times
13 December 2015
Dear Seetharaman & Goel,
Thank you for your reply.
So in a nutshell how these group of overseas friends can help their friend in india for child's medical expenses without attracting any tax liability.
Also if the overseas contributions are taxable,does it come under income from other sources?
Does 250,000 basic exemption still apply?
I used the income tax calculator which shows a tax liability of Rs.515 for an amount of 275,000/-
Thanks and regards
Thank you for your reply.
So in a nutshell how these group of overseas friends can help their friend in india for child's medical expenses without attracting any tax liability.
Also if the overseas contributions are taxable,does it come under income from other sources?
Does 250,000 basic exemption still apply?
I used the income tax calculator which shows a tax liability of Rs.515 for an amount of 275,000/-
Thanks and regards
13 December 2015
Yes it will come under income from other sources and basic exemption applicable and your calculation is right only Rs. 515 payable.
Message likes :
1 times
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
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Payment of bonus act - notice pay recovery
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
