I Would like to know whether there will be any tax on NEFT/ Funds Transfers( Individual Account) from one bank to other bank within India. If so, what are the rates applicable and should we have the PAN Card for funds transfer if the transfer amount is Rs.1 Lac and above.Kindly reply.
06 August 2010
No taxes applicable as such on NEFT/RTGS transfers within India. However some banks charge the customer for such transfers & some do it free. It depends on the type of benefits provided by the bank on your account. If at all there is any charges, it is only a bank charge & not a statutory levy.
Banks insist PAN details at the time of opening bank accounts. As of now there is no statutory requirement to furnish PAN details for e- transfer/receipt of funds.