Tax on money transfer between bank accounts
Prem Dhawan
(Querist) 18 January 2015
This query is : Resolved
Dear Sir,
Is there any tax if I transfer (by cheque or RTGS/NEFT) 2 lakhs or more into the bank account of wife/a family member/friend?
What is the maximum amount exempted from tax?
Can I split the amount into smaller pieces and transfer via several transactions (cheque or RTGS/NEFT)?
Is money transfer considered as a gift? Is there any tax on gift?
Thanks in advance.
Guest
(Expert) 18 January 2015
Dear Author,This same Forum is also having CA Club India Forum whose Email Id is mentioned below this same thread the Club of Professional Practising Chartered Accountants.You Post your Doubt/Query there for Best Replies.
ajay sethi
(Expert) 18 January 2015
no tax is levied for online transfer of funds to wife/ family member account .
the person receiving funds has to declare receipt in his /her income tax returns
Rajendra K Goyal
(Expert) 18 January 2015
If an individual receives cash or non-cash gifts from persons other than blood relatives in excess of Rs. 50,000 in a year, the whole of such gift received will be treated as the individual's income and must be included under 'Income from other sources'. If it does not exceed Rs. 50,000, it will not be treated as income.
A close or blood relative would include any of the following:
Spouse of the individual
Brother or sister of the individual
Brother or sister of the spouse of the individual
Brother or sister of either of the parents of the individual
Any lineal ascendant or descendant of the individuals
Any lineal ascendant or descendant of spouse of the individuals
Spouse of the Brother / sister of individual or brother/ sister of spouse of individual.
gifts from the following sources are tax exempt irrespective of amount received as Gift:
Any blood/close relative*Gifts received on your wedding
Gifts received by Inheritance or by Will
Gifts received from any local authority (state government and related establishments)
From any university, educational institutions, charitable institutions and other institutions referred under section 10 (23).
Dr J C Vashista
(Expert) 18 January 2015
Very well explained and advised by expert Mr. Rajendra K Goyal, I agree.
Prem Dhawan
(Querist) 18 January 2015
Thanks a lot to everyone for the informative replies, particularly to Mr Goyal.
Regards.
a.k.singh
(Expert) 18 January 2015
you can also take a better personal advice from your own banker/bank manager where your Bank account is.
Shailesh Kumar Shah
(Expert) 18 January 2015
in case you have transferred rs. 2 lakhs to your friend then income tax have to pay by your friend.
T. Kalaiselvan, Advocate
(Expert) 20 January 2015
Agreed with the opinion of expert Mr. Rajendra K Goyal which explained the entire details beyond the author's query.
