cpc

tax implication regarding money transfer


I am receiving a money (approx 5 Lakh) from abroad for my friend.
Will it be counted as my income?
Do I'll have to pay tax for that money?
(As we know money received more than Rs 50000 from abroad is taxable.)
p.s - Sender is not my relative.
 
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Retired Manager

Important point is, why your friend is sending money into your account?  Doesn't he have his own account in India?  For yor friend!? What exactly you mean by this.

Is he a foreign national, in which case also why he is sending money to you, there should be a known purpose. 

 

Unless the purpose and reason for such money is being credited to your account, it's not possible to give clarification.

 

Your banker must have asked you these questions before crediting the foreign inward remittance into your country. Inform,  or may be since the remittance is less than USD 10000 or its equivalent in other currency, as per extant FEDAI rules, bank might have automatically converted and  credited to your account.

 

Please give full and correct details.

 
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Lawyer

The post do not involve any legal issue for consideration and obligation of experts.

Consult a local tax consultant for professional guidance.

 
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Retired Manager

In my reply above a small mistake cropped up in one of the sentences

"...foreign inward remittance into your country" Please read Country as Account.

 

FEMA and Income Tax act also are also Laws of the land and hence there is no issue in attending to your query, provided you give full details.

However, ultimately, you need to consult a good Chartered Accountant who shall guide you as per the Foreign Exchange Management Act and Income Tax Act depending upon the facts given by you.

 

 
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As there is a limit of money you can send to an person from abroad, that's why my friend asked me to give my account detail in order to receive more. the money is of business nature.
 
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Retired Manager

Sagar Raj jee, 

If the money is sent to you because it's going to exceed any limit ,  it shall be subverting such law/rules imposing the said limit. 

You haven't informed all the details. If it is for business in India, what is the nature of such business, proprietorship, partnership, private or public limited company. Kindly note unwittingly you shouldn't violate FEMA provisions. Okay,  If you are feeling delicate to disclose details in a public forum contact a Chartered Accountant dealing with matters relating to foreign remittances etc. with full details, for getting proper clarification and the procedure to be complied with.

 
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Retired employee.

The issue involved in this transaction is not TAX, it is illegal as you are not concerned with such transaction and being used as a conduit for illegal trade.

 
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