-
-
-
Services
-
-
-
More
-
POSTED BY ON November 8, 2012 2:20 pm COMMENTS (4)
I have 2 situations for that I need to know about tax implications.
1. I live in India. I have purchased a property in India on my sister’s name who lives in abroad. She transfers money from her foreign bank account to my (or my father’s) saving account in India and I pay to the builder. Is there any income tax implication on me?
Though property is on her name. I have provided my address and contact details for the ease of communication. Is it right? Does it complicate things for me?
2.She occassionaly transfers small amounts of money into my account as a gift or to purchase something for her from India.Is there any income tax implication on me?
I really appriciate if you can help me understand this.
2021 © Jagoinvestor.com All Right Reserved
Dear Ashal, Malhar’s answer cheared my doubts. Thanks for asking.
-Ravi
Dear Ravi, I do hope the things are clear to you now?
thanks
Ashal
Here is a reply from Malhar Majumdar – https://www.facebook.com/malharmajumder . Thanks to him 🙂
–
1 — As the property is in the name of your sister and you are acting as her representative in India, you may accept the money in your account without the amount getting added to your income. However you may keep bank records of receipt from sister and corresponding builder payments to avoid any complications.
2 — You are not liable to pay any taxes on the same. Please read Clause 56 (vii) proviso (a) of the IT Act 1961, which says that if an individual receives a sum of money from a relative, which includes brother or sister of the individual, he is not liable to pay any taxes. I am considering this to be casual receipt and not because of any contractual obligation. Hence I am classifying this income as Income from Other Sources u/s Sec 156
–
Malhar Majumdar from http://www.gliese.com
Thanks a lot Manish & Malhar !