Brother wants to send a huge money from USA by online into my account. Is it fine?

POSTED BY Jagdish Gahlot ON August 28, 2013 9:49 pm COMMENTS (5)

Hi,

I didn’t find a good subject line. I have below situation.

My brother is living in US for the last 2 years, now by means of power of attorney he wants me to purchase property for him. But for the same a lump sum of 15 lac amount he wants to transfer into my account via online banking or any fund transfer mechanism.

So the question is: is it fine that he can transfer his money to my bank account, as well as will there be any consquences into my tax report? If no then how much I should allow him to transfer?

5 replies on this article “Brother wants to send a huge money from USA by online into my account. Is it fine?”

  1. Jagdish Gahlot says:

    Thanks Ashal and than BanyanFA for your prompt reply, I would take care of your suggestion BanyanFA for asking him to open such an account.

  2. BanyanFA says:

    Jagdish,
    When it comes to large amounts, I personally would refrain from channeling the funds via a third person, even though he may be a blood relative. Effectively he is bypassing his NRI status. If he has some time, why can’t he open a NRI bank account which can be done within 2-3 weeks.

  3. Dear Jagdish, in that case I already told you how to move ahead.

    thanks

    Ashal

  4. Jagdish Gahlot says:

    Thanks Ashal for your valuable reply. He can not transfer to the seller’s a account because till the time the property is not finalized yet, as well as for other various expanses (like stamp registration or any other chai pani kharcha )he wants to be settled down by myself, so he believes I should do it when ever required. And most of the time seller/builder requires a cheque to be submitted rather than online payment, so that is also one of the reason.

  5. Dear Jagdish, why the brother in question can not transfer the amount directly to the seller’s account? No need of you to come into the picture.

    In case, both of you (brother as well as seller) are not comfortable with the idea of direct to seller account transfer idea, please ask your brother to transfer all the amount into your own account & at the same time, ask him to write a letter that the amount is meant for his own use for the purchase of property under your attorneyship. Keep this letter with you for your future reference.

    Thanks

    Ashal

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