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.
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.
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.
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.
CAclubindia
