I work in middle east and wanted to transfer money to my uncle's account, as a help to him. I will be depositing cash money through a money transfer agent.

First question is "does my uncle have to provide justification, where this money has come from?"

Secondly the amount is less then Rs300000, and he has no other source of income. will this money be taxable?


As you do not have any relation to your Uncle, It will be treated as "Gift" to your uncle. He has to pay a Gift Tax on the amount received.

Under the Gift Tax, if the total value of Gifts [including assets like shares etc or Immovable assets like land / house etc] exceeds Rs 50,000/- for a year, all the amount will be taxable at the income tax slab.

If your Uncle has no other source of Income, then in the current financial year, the zero percent slab is till Rs 3,00,000. Hence No Tax.

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