Is a transfer between 2 NRO accounts a taxable event?

Question

I'm an NRI and my friend who is also an NRI wants to transfer money from his NRO account to my NRO account. Does this transfer attract Tax?

Answer 1

Transfer by itself is not liable for taxation.

But depending on the amount, the Income Tax Department might request clarification from you on the source and reason for the fund transfer.

Additionally, any interest you receive in the account will also attract a TDS deduction.

Answer 2

There is no tax unless it is an income. Then income tax will apply, and the recipient will need to file ITR.