Dear Fellow Members:
I would like to know diverse opinions on this:
Mr Black, Mr White, Mr Gray are three friends and all are law abiding.
Mr Black wants to give Rs 10L to Mr White.
Mr White doesn't want to pay gift tax if he takes this 10L as an online transfer. (law abiding hence no cash dealing)
They use the following process:
1) Mr Black purchases Mr Gray's (third friend) Mercedez for 10L (doesn't matter even if Mercedez fair value is 20L).
2) Mr Black gift this Mercedez to Mr White.
3) Mr White sells it back to Mr Gray and takes the 10L from him.
All money transfer takes place using online channel.
End result: Mr White has the gift of 10L from Mr Black. Mr Gray gets to keep his car. Isn't that ridiculously easy, the Car doesn't even need to leave Mr Gray's premises at all.
I have thrown this out just to keep myself corrected on this. Any wrong assumption anywhere?
Read more at: /forum/details.asp?mod_id=415579&offset=1
CAclubindia
