Which tax will apply to foreign currency deposited in my acc

Amol Kulkarni (Software Engineer) (24 Points)

29 July 2011  

Hello Everyone,

 

I had loaned 50k rs to a friend who has relocated to Middle East. He wants to return the money to me by directly depositing the foreign currency to my savings bank account.

I'm a resident Indian with a standard savings bank account.

He plans to deposit 4k rs for 12 months.

Will such transaction attract tax ?

What kind of tax will be applicable ?

Thanks and Regards,

Amol Kulkarni