• Transferring funds from salary account to my daughters account

My daughter would be applying for UK tier IV visa in order to study in U.K for a Masters degree programme. As part of a financial document she needs to show a sum of nearly Rs.9.0 lakhs (Nine lakhs) for a period of 28 days prior to visa application to prove that she has sufficient funds to meet her living costs in U.K. 

In this scenario can I transfer a sum of Rs.9.0 lakhs from my salary savings account to my daughters account in the same bank and she would be transferring the sum back to my account after obtaining the visa..While doing this,(1) would there be any tax implications for my daughter ? or (2) to me when i receive it back through bank transfer?
Asked 3 months ago in Income Tax from Neyveli, Tamil Nadu
Hi

No. There would be no issue in such transaction. Don't worry.
Lakshita Bhandari
CA, Mumbai
1661 Answers
44 Consultations

5.0 on 5.0

No, There will not be any issue in this. If at all some queries are raised, you can reply saying that it was a loan given by you to your daughter.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
3098 Answers
136 Consultations

5.0 on 5.0

Hi,

The amount you are transferring to your daughters account must be the accumulated funds out of your savings or should be a part of the income on which taxes have already been paid.

Thus, there will not be any further taxation of such amount on incoming or outgoing in any of the bank accounts.

Thanks
Damini 
Damini Agarwal
CA, Bengaluru
247 Answers
12 Consultations

5.0 on 5.0

Hi,

No. There would be no tax implication on either of you. It can be explained as a loan which was given to your daughter which she repaid back in the same account, in case if there is any query.

Regards,
Nikhil.
Nikhil Khanna
CA, Mumbai
850 Answers
5 Consultations

5.0 on 5.0

No tax implications. Show the amount as loan to daughter.
Vivek Kumar Arora
CA, Delhi
1006 Answers
19 Consultations

5.0 on 5.0

Yes you can do it.
No tax implications in such case.
Swati Agrawal
CA, Indore
434 Answers

5.0 on 5.0

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