Treatment of income

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LALIT KUMAR (Querist)
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28 April 2013 I want to transfer sum fund(approx 1.5 lakh) to other's bank account through net banking for sometimes.In this case what will be actual treatment to do this,so that the person donot come under incometax act ?

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
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29 April 2013 Whenever you transfer funds through Net Banking the accounting treatment states that you have either transferred funds to your creditors or you have repaid your loan or you have given an amount as loan/gift to the person in whose accounts the funds have been trnasferred.
So you CAN NOT in any case get your Net Banking Transaction out of Tax Net and if you still try to avoid/misrepresent the transaction then that will be equavalent to MONEY LAUNDERING.
So try not to indulge in such activities.