One of my friend getting money transfer from ones' salary staying abroad. He gets transfer of about 15000 every month for his friend's house family and same time he withdraws and give it to friend's family. My friend is a salaried person and tax deducted from his salary as per rule, so shoud he pay tax for that transfer amount also while that income is not pertaining to his income?.Please advise.
2006-12-03 15:52:51 · 2 answers · asked by zulfiquar a 1 in Business & Finance ➔ Taxes ➔ India
What your friend is doing is not correct. Ask him to open a bank account in the name of his friend family members and let the amount be credited to that account from now onwards.
Your friend is not suppose receive the amount from his friend as he is not blood relative to his friend. The amount is tax free only if it is sent to blood relatives in India.
Nothing may happen for the amount already received by your friend as there is a valid reason. Ask him not to worry. But this practice should be stopped immediately.
xxx
2006-12-04 02:00:09 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The friend who receives Rs 15000/pm must pay tax on it.
2006-12-04 02:22:47 · answer #2 · answered by J.SWAMY I ఇ జ స్వామి 7 · 0⤊ 0⤋