Tax & Legal implications of money received from foreign country
This query is : Resolved
21 August 2024
Client's Case :
My relative would like to send the following amounts directly to my bank account from abroad for the following two purposes :
1. An amount of Rs. 10-15 Lakh for the purpose of cost of education of my son.
2. Another amount of Rs. 10-15 Lakh further utilising which I shall purchase a residential house for myself.
Queries :
1.What will be the income tax implications of the above receipts in the hands of the recipient who is a resident and ordinarily resident individual in India having no other source of income at present ?
2. Will the implications be any different if the amounts are smaller, say Rs. 5 Lakh in each of the above cases ?
3. Will there be any implication of FEMA provisions on the recipient for receipt of above amounts from abroad directly into his bank account ?
Thank you and best regards.
My relative would like to send the following amounts directly to my bank account from abroad for the following two purposes :
1. An amount of Rs. 10-15 Lakh for the purpose of cost of education of my son.
2. Another amount of Rs. 10-15 Lakh further utilising which I shall purchase a residential house for myself.
Queries :
1.What will be the income tax implications of the above receipts in the hands of the recipient who is a resident and ordinarily resident individual in India having no other source of income at present ?
2. Will the implications be any different if the amounts are smaller, say Rs. 5 Lakh in each of the above cases ?
3. Will there be any implication of FEMA provisions on the recipient for receipt of above amounts from abroad directly into his bank account ?
Thank you and best regards.
22 August 2024
What is your relation with the relative abroad?
22 August 2024
He is a relative (Uncle living in the USA). Thank you and regards Sir.
22 August 2024
If he is real brother of your father (blood relation) then any amount received by you through banking channel will be tax exempt to you u/s. 56(2) IT act. No tax liability when any amount received by an assessee from his father's brother. Except transfer through banking mode & a gift deed; no other formalities in India.
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