Smart MBA (Manager) (33 Points)
07 February 2014Hi,
Person A who is NRI, wantes to help his father buy a property in India and has gifted/Loaned some money to father.But money was paid directly to seller and not to father first and then to seller.
When father sells the property say after 5 years, can this anyway trigger Sec 195 of IT ACT as it was partly paid by NRI although intent was to loan/gift the father and not to buy property for himself by perosn A.
Deepak
Mihir
(Wealth Manager)
(5293 Points)
Replied 08 February 2014
Whose name the property is purchased?
The NRI should have transferred the gift to his father and prepare a gift deed. And the father could have paid to the seller.
CAclubindia
