Often when out for a movie,etc with friends, we end up with having to pay each other Rs 200-300 (usually < 500) to settle out the differences. Most people are fine with others transferring the amount to their bank account via NEFT, but I was advised that this is not a good idea since if at any time an income tax audit takes place, I'll be charged tax on all these transfers as if they were my income.
Is this really true? Or is it harmless to transfer small amounts from random sources?
Also, my understanding is that I am risk free if I transfer TO someone elses account, risk only arises if money is transferred FROM someone elses account to mine correct?
Since these would be almost weekly and of small amounts, keeping any sort of paperwork would be rather cumbersome