curiousmind (None) (25 Points)
30 July 2010I am an NRI, settled in UK.
* If I send money to family / friends in India towards their personal expenses (say under INR 10k/month), does it get treated as income in the recipients' hands? What are the income tax implications for the recipient?
* Is the recipient required to show this in his tax filing? If yes, under what heading?
Thanks in advance for your responses.
Deepesh Khatri
(CA)
(167 Points)
Replied 30 July 2010
Need not be shown in hands of relatives. "Income from other sources" in hands of friends if amount above Rs. 50000.
Saurabh Toshniwal
(ca final)
(2363 Points)
Replied 02 August 2010
for the relative, it is not an income according to income tax act but for the friend it is exempt upto Rs. 50000 and if the total amount during previous year exceeds Rs. 50000 then whole amount is taxable as income from other sources for relevent a.y.
suppose mr. A send rs. 10000 to his friend 5 times in a year then rs. 50000 (10000*5) is exempt from tax but if mr. A rs. 10000 to his friend 6 times in a year then entire amount of rs. 60000 (10000*6) is taxable as income from other sources but in case of relative the entire amount is exempt from tax whether it below rs. 50000, equal to rs. 50000 or more than rs. 50000
curiousmind
(None)
(25 Points)
Replied 03 August 2010
Thanks for your responses.
Does that imply that the relative is not required to report this amount received in his IT return at all?
Does the same apply for the friend - i.e. not having to report the amount on his IT return at all (if < 50000 in the AY)?
6 days Certification Course on GST Practical Return Filing Process
CAclubindia
