sir i rec money in my bank a/c about 8500 from my friend who is a citizen of us so in which head i have to show you that income.
is i have to pay tax on it.
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 28 June 2019
1. For what purpose you have received this amount matters. I am assuming this 8,500 is in Indian rupees and its gift from your friend. And if it is in the nature of a gift given by your friend, it will not be taxable. As the only section which taxes this amount is 56(2)(x) where the aggregate amount received during the year should exceed Rs. 50,000 in order to tax under this section.
2. If it's in Foreign currency, convert this into Indian rupees and see whether it exceeds Rs. 50,000 and if it exceeds, the whole amount will be taxable under sec 56(2)(x) under the head Income from Other Sources.
Please correct me if the above solution has an alternative view.
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