Tax on bank transfer

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2015 Is there any tax if I transfer (by cheque or RTGS/NEFT) 2 lakhs or more into the bank account of wife/a family member/friend?

What is the maximum amount exempted from tax?

Can I split the amount into smaller pieces and transfer via several transactions (cheque or RTGS/NEFT)?

Is money transfer considered as gift? Is there any tax on gift?

Thanks in advance.

Hitender Gaur

Hitender Gaur (Expert)
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18 January 2015 if you are giving such money as gift then it will be treated as gift and taxable but if you are giving this money as loan then it will not taxable. It is your motive which decide whether it is gift of loan.

Deepak Arora

Deepak Arora (Expert)
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19 January 2015 This also depends to whom you are giving this money as a gift.

If you are giving to your wife/close family member then it will be exempted but if you are giving to your friend then it will be taxable.

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