Payment by cheque between in-laws

Max Mir (Querist) 14 April 2014 This query is : Resolved
My brother gave her sister-in-law some amount for her studies in US. To return the amount my brother's father-in-law deposited equivalent amount in my mother's account in India.
Now the income tax lawyer is saying this transaction is not correct and can amount to dowry.( god forbid if relation goes sour in future). At present the relation are wonderful.

Is the lawyer advice correct?
What should we do now so that the transaction does not amount to dowry on future? Should we return the amount back? Should we get something in writing from his father-in-law?

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V R SHROFF (Expert) 14 April 2014
Send a Regd Post Letter/ [ by Lawyer if u so wish, ] clearly mention amt and purpose ; was other than dowry. It will protect you life time

Rajendra K Goyal (Expert) 15 April 2014
Ask your brother's FIL to confirm that this amount was send for the particular purpose and the same has been returned back to him by your brother.

malipeddi jaggarao (Expert) 15 April 2014
Agreed with expert Mr.Rajendra K Goyal.

Guest (Expert) 15 April 2014
No complicated suystem need be adopted.

Your brother's father-in-law may be asked to give simply an acknowledgment on affidavit that the amount gave to her daughter .......... (name) by .......... (name) for her studies in US has been refunded back by deposit in to his account No........... on ........ (date).

Biswanath Roy (Expert) 15 April 2014
Apart from many good opinions from different experts on the query and more particularly the valued advice of Learned Mr. Dhingra I need mention here that as you stated "equivalent amount" which means/indicates that your brother might have accomodated his sister-in-law with US dollars equivalent to which was paid by father-in-law to your mother. If the incident is such in that event your brother may face some legal obligation to clarify the same to avoid rigor of FEMA.

Sudhir Kumar, Advocate (Expert) 15 April 2014
No doubt the transaction is stupidity.

any receipt or affidavit demanded from him will result in relation getting sour as these appear to be cordial today.

such action will invite trouble even if the trouble does not want to come.

you already have cross transaction. If the trouble is inevitable or brewing up then come forward

T. Kalaiselvan, Advocate (Expert) 15 April 2014
The opinion expressed by expert Mr. Sudhir Kumar seems to be meaningful, however if you apprehend problem in the future due to this, you may obtain an acknowledgment as suggested by expert Mr. Dhingra, which will be complete.

malipeddi jaggarao (Expert) 17 April 2014
If exchange in different currency, there are ceilings under FEMA. What is the amount involved in US Dollars?

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