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Tax for money sent from UK to India

Amit (bb) (28 Points)

16 December 2011

Good Day !!

I am working in UK on work VISA from last 2 .6 years

I want to know if I send money from UK to india to my younger brother .... is it taxable ??

My brother is filling return in India and I am sending money to his salary account by online ( From UK to US )

OR pls let me know if any other option is available ...do I send money oto my fathers or mothers account to save tax ??

Thanks in advance !!!

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18 Replies

Manika Venkata Siva Prasad (IPCC-student) (84 Points)
Replied 16 December 2011

In your case, 1st we need to clear that whether u r Resident Indian or Resident but nt ordinary resident or Non Residnt indian to get clarity on this, let me know when you went to Uk resently, and tell me about your visitings to india in last 4years, in details read the following and tell me ur status, den only we can tell abuot taxability of ur income, but plz wait for experts reply.

"(1) An individual is said to be resident in India in any previous year, if he - (a) Is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more; or

(c) Having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.

Explanation : In the case of an individual, - (a) Being a citizen of India, who leaves India in any previous year as a member of the crew of an Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958, (44 of 1958) or for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words "sixty days", occurring therein, the words "one hundred and eighty-two days" had been substituted;

(b) Being a citizen of India, or a person of Indian origin within the meaning of Explanation to clause (e) of section 115C, who, being outside India, comes on a visit to India in any previous year, the provisions of sub-clause (c) shall apply in relation to that year as if for the words "sixty days", occurring therein, the words "one hundred eighty-two days" had been substituted."

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Z ( ) (2965 Points)
Replied 16 December 2011

Money transfer are not taxable.

Manika Venkata Siva Prasad (IPCC-student) (84 Points)
Replied 16 December 2011

k 'z' tnx for ur ans, but i didnt read anythng that "money transfer not taxable" plz clarify my doubt, but i thnk if tax has been already paid/charged den only the amount not taxable, experts plz clarify it.

Z ( ) (2965 Points)
Replied 16 December 2011

Its not covered u/s 5 or u/s 9 or other sec.

Remmitances are tax free , income is chargeable to tax

meenakshi (Audit Manager) (81 Points)
Replied 16 December 2011

As per section 56, any sum of money exceeding Rs 25000 received without consideration by an Individual or HUF is taxable. but this does not apply to money received from relatives.

Hence, money received by your younger brother in India is not taxable in his hands.

Guys! correct me if I am wrong.

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Manika Venkata Siva Prasad (IPCC-student) (84 Points)
Replied 16 December 2011

You are correct, but here it matters whether it has income(chargable) or Remitence(not chargable), It should be clarify by Mr. Amit, If it has been already taxable we can treat it as remitance, otherwise it is income and it will taxable.

Amit (bb) (28 Points)
Replied 16 December 2011

Originally posted by : Manika Venkata Siva Prasad
	You are correct, but here it matters whether it has income(chargable) or Remitence(not chargable), It should be clarify by Mr. Amit, If it has been already taxable we can treat it as remitance, otherwise it is income and it will taxable.

I have already paid tax in UK , just want to send that to my brother for some investment ....say gold

I hope I ansered your question ...

meenakshi (Audit Manager) (81 Points)
Replied 16 December 2011

the money u send to your brother is absolutely tax free in his hands.

1 Like

Amit (bb) (28 Points)
Replied 16 December 2011

Originally posted by : Manika Venkata Siva Prasad
	You are correct, but here it matters whether it has income(chargable) or Remitence(not chargable), It should be clarify by Mr. Amit, If it has been already taxable we can treat it as remitance, otherwise it is income and it will taxable.

Thanks Manika

Just want to make sure that ...amount I send to my younger brother is not taxable for him ...