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e.g. If sending an amount from an account abroad to India by converting it in INR before sending.

2006-10-15 05:59:02 · 1 answers · asked by Bharat 1 in Business & Finance Taxes India

1 answers

Under section 56(2)(v) of the Income-tax Act, 1961, any sum of money exceeding Rs 50,000 in a year without consideration is taxable. Exceptions have been provided in the following cases:

(i) Amount received from a relative
(ii) Amount received on the occasion of one's marriage
(iii) Amount received under a will or by way of inheritance
(iv) Amount received in contemplation of death of the payer
(v) Amount received from a registered charity
(vi) Amount received from a local authority

Relative for this purpose means:

(i) spouse of recipient
(ii) brother or sister of the recipient
(iii) brother or sister of the spouse of the recipient
(iv) brother or sister either parents of the recipient
(v) any lineal ascendant or descendant of the recipient
(vi) any lineal ascendant or descendant of the spouse of the recipient
(vii) spouse of the person referred to in (ii) to (vi) above

Thus, if the gift is not covered by any of the exceptions and is above Rs 50,000 during the year, it will be taxed whether it from abroad or within India. Do note that if the amount crosses Rs 50000, the entire amount will be taxable, not the amount above 50000.

Better to get is in different hands and keep each amount below 50000
(vi)

2006-10-15 18:37:52 · answer #1 · answered by sonali_n 2 · 0 0

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