shon (Admin) 22 February 2014
Dear Sir,
I started to wok in Afghanistan from August 2012.I have been sending money through wire transfer to my brother saving account.I have have saved up to 8 -9 Lac in his account.
Last week my brother has made a 5 Lac transaction and the bank officials said that he may get notice for IT to pay tax .
I don't have any assets or FD or mutual funds in India
Please advise whether I need to pay income Tax.
thank you,
R.V.RAO (retired) 22 February 2014
simply because there is a Rs5 lacs transaction in S.B a/c ,there wont be any tax.
be vey clear as to nature of transaction,like an asset buy ,whom paid , if paid in cash/cheque etc... to reply your query.
shon (Admin) 23 February 2014
Thank you for your reply.
I have borrowed this money from my friend and I have paid him back.As I am working outside India.How much amount I can save in Saving Account of my brother and how much amount it exceeds I need to pay tax.
Please advise the necessary step to be taken in order not to pay tax.
thank you,
R.V.RAO (retired) 23 February 2014
you need not worry about tax on money in S.B a/c.
on the contrary,money in savings bank earns interest @4% P.A.some banks pay even more.
the question of taxing money in savings bank does not arise.
as far as repayment of loan by you from out of your brother's savings bank a/c,,keep carefully all correspondence,records , receipts and documents for any future verification
.your brother needs to explain the transactions in his bank a/c,in case of any inquiry /verification.
being an nri,you can open NRE/NRO a/c,wherein you can put money in or draw money out of them or transfer or save as you like.
as far as upper limit of amounts kept in S.B a/c,there is no restriction, though some banks may not allow more than Rs 10 lacs.
but remember cash deposits in S.B a/c of Rs 10 lacs or more in a year will create problems U/S 285BA of ITAct.
R.V.RAO (retired) 23 February 2014
you need not worry about tax on money in S.B a/c.
on the contrary,money in savings bank earns interest @4% P.A.some banks pay even more.
the question of taxing money in savings bank does not arise.
as far as repayment of loan by you from out of your brother's savings bank a/c,,keep carefully all correspondence,records , receipts and documents for any future verification
.your brother needs to explain the transactions in his bank a/c,in case of any inquiry /verification.
being an nri,you can open NRE/NRO a/c,wherein you can put money in or draw money out of them or transfer or save as you like.
as far as upper limit of amounts kept in S.B a/c,there is no restriction, though some banks may not allow more than Rs 10 lacs.
but remember cash deposits in S.B a/c of Rs 10 lacs or more in a year will create problems U/S 285BA of ITAct.
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