One of my friend received 20000 dollars in his saving account from us citizen.
What will be the tax treatment....can we treat this as loan and return after one or two years.....what documents required from our side to be prove as a loan.....if any fema conditions are applicable.....or will it b treated as income.
15 September 2014
Thanks for your response...but i have one more question....this amount received from american friend are actually the reimbursement of expenses incurred when he is on visit to india....he just returned back the money from usa to india..so is there any way out..
31 October 2014
I also have similar type of query.Amount received from USA friend to Resident Assessee in his bank account for assessee's personal use as short term adjustment, free of interest.Now assessee wants to repay his USA Friend. What precautions to be taken to avoid any violations.Amount involved is US$5000
02 November 2014
It is advisable that while returning it is not shown as repayment of loan as you are not permitted to borrow from non-relatives. Just show it is as a gift
CAclubindia
