jrmchess (na) (197 Points)
09 December 2016Hi all CAs and Accounting experts,
I wish to transfer funds from my NRE account into my friend's Indian saving bank account online. Would my friend have to pay any tax as a result of this? He wishes to invest this amount in mutual funds and shares.
Thanks
gunturboy26
(Self Employed)
(217 Points)
Replied 09 December 2016
Generally we can loan money to our friends, we can write a document with all the details which can be shown as proof.
But as you both live in two different countries, you cannot write such a document now, and as the money is from an NRE account, maybe this tranasction will not be treated as loan.
Even if it is treated as loan, as he is going to invest it, he will have some gains which will be added to his income, so he will pay tax.
sk
(student)
(82 Points)
Replied 09 December 2016
jrmchess
(na)
(197 Points)
Replied 09 December 2016
| Originally posted by : sk | ||
 |
ya...it's an income for ur frnd...so he will be liable to pay tax...not you...if u send money to ur own account or account of any close relatives then it won't be taxable... otherwise taxable |  |
just to confirm, if I were to transfer money into my parents or sibling's account it is not taxable?
sk
(student)
(82 Points)
Replied 10 December 2016
CAclubindia
