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smit sanjaybhi shah (student )     01 June 2020

Tax on foreign transaction

Sir i am Smit , my friend from USA wants to do FDI in india so which sector is good for investment in India? he wants to transfer 10MUS$ in my account but due to RBI monetary restriction his HSBC bank in USA have refuse to transfer his 10mUS$ in my account in S.B.I, so he created to my online account in his HSBC BANK USA , he transfer his 10MUS$ money from his HSBC bank regular account into My HSBC bank online account now his bank (HSBC) says that i will transfer this money from my online account at HSBC bank into my regular saving account in SBi through online way. So sir is this transaction is legal in India, as per Income tax laws and banking laws ,if it is legal what percentages of TAX will be levy on this transaction by Income tax department ? Note- Sir i am Indian citizen not NRI and my friend is USA citizen, I have a regular saving account in SBI bank. If this transaction is done then any criminal case registrar against me under Money laundering/ benami transaction act by GOVT.? NRE/NRO account is mandatory for this transaction of my friend in SBi bank?


 5 Replies

Hemant Agarwal ( Mumbai : 9820174108)     02 June 2020

1.  IF you transfer Money in the way you have described to an Indian Bank Account, THEN you can be prosecuted under FERA and PMLA.

Keep Smiling .... Hemant Agarwal

1 Like

smit sanjaybhi shah (student )     03 June 2020

How can be prosecuted? under which section of  both law is allowed?

Hemant Agarwal ( Mumbai : 9820174108)     03 June 2020

Originally posted by : smit sanjaybhi shah
How can be prosecuted? under which section of  both law is allowed?


1. For specific technical queries, consult with a local lawyer specializing in Corporate & Finance Laws, after showing him all the relevant documents and your problems.

Keep Smiling .... Hemant Agarwal

KISHAN DUTT KALASKAR (Advocate)     03 June 2020

Please contact any Chartered Accountant or Financial Adviser for more clarity.

smit sanjaybhi shah (student )     09 June 2020

Please said that under which   section  Of  pmla  and fema law i will prosecute?

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