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From 2002 to 2010, I was working abroad. I sent money to my account in India via Western Union. In every transaction I used to keep 10000/- separately with me (my hard earned money).

In the last 8 years, I saved at least 5 lacs rupees in cash. I gave this 5 lacs to my brother (he needed it urgently). Is there any tax to be paid either by me or by my brother? If yes, how much ?

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  • The question is not clear, where was the Rs 10,000 kept? In a Bank Account? Are you going to get the money back from your brother?
    – Dheer
    Nov 25, 2013 at 14:50
  • @Dheer and user11952, did my edits help? (Thanks for teaching me some new vocabulary)
    – MrChrister
    Nov 25, 2013 at 14:50

1 Answer 1

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From what I understand, you have money earned in US and after paying taxes that are due in the US, you have transferred a portion of this to your brother.

As you have earned this money outside India, there is not tax liability of this amount in India.
Your giving it to your brother would at best be treated as GIFT [and not Income]. As you are giving it to your brother there is no limit on the amount of money that can be gifted. There is no tax liability for your brother.
For more details read the http://www.moneycontrol.com/news/tax/gift-tax-whatsa-gift_664238.html
http://www.thehindubusinessline.in/bline/blnri/exp-tax.htm

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