0

I wanted to know the income tax implications if A transfers more than fifty thousand Indian rupees to B's saving account electronically. The B is not a relative to A. Would B be taxed as he/she is a recipient? And will A be questioned on the intent on transfer? What kind of documentation is required for A to furnish if in case there is a income tax scrutiny?

  • Why did A transfer R50K to B? As a gift, loan, etc? – RonJohn Jul 31 at 15:25
1

Income tax is payable by B. Unless Income tax authority has reason to believe A transferred for tax evasion, they are not bothered.

This does not mean other agencies like ED or Police will be not bothered, if they have reason to believe the intent was for unlawful gains it would be investigated

  • Although it should be an independent question but what are the ways it can be documented so that you have right explanation to Tax authorities? Like if its is Loan, Gift. – Sam Jul 31 at 18:21
  • 1
    @Sam type it on stamp paper and notarize it or get it registered – Dheer Aug 1 at 1:09

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.