Can you pls advise:
I am working in Dubai, and applied for a loan of 25Lakhs, I would like to use this funds to repay my personal loan (to relatives) and want to buy a land with left out money. I have two option – which is good in terms of tax implication:
Send money to my mother's Savings account directly
Open an NRE account in India and send money to this NRE account. Transfer funds online from NRE Account to mother's Savings account. My Mother can withdraw 30 Lk amount. [mother has pan card and has pension account but didnt file any return as annual income is less than 60K p a]. As this is large amount transacting in her account, is there any tax implication – Will she get any tax notice? If yes how to avoid this? Is this deposit considered as her income? Does she need to pay tax?
Can you pls advise which is the best method?
Thanks Dheer for your quick response. I don't have any document for the relatives loan (those are all hand loan). Is income tax only ask question with regard to only source or even utilization of funds aswell?