US citizen sending Money to Indian Citizen

I have my friend who is a US citizen & he would like send some money to my normal savings account to India!! It is around $100-150K!! He has paid proper taxes on the income that he has!!! What kind of Taxes I am liable to pay as an Indian citizen & what are the restrictions that can come across!!!
Asked 1 month ago in Income Tax from Mumbai, Maharashtra
Dear sir,

This amount will be treated as gift and will be added in your income as income from other sources.

Gifts recived from non relatives is taxable in the hands of receiver, if the total amount of gift exceeds INR 50,000.

Further, there could be some FEMA implications which my FEMA colleagues can tell you.

Please feel free to call/revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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Dear Sir,

You can receive tax free gifts in following situations:

1. If you are receiving gifts on the occasion of your marriage.
2. If you are receiving gifts from your relative. 

Please feel free to call/revert in case of any doubts 

Thanks 
Abhishek Dugar
Abhishek Dugar
CA, Mumbai
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Dear Sir,

Yes, you can receive tax free gift from a US citizen subject to FEMA compliances. There is not time window mentioned in the act. It is recommended that you prepare proper gift deed and mention in the gift deed that this gift is on the occasion of marriage. The date of gift deed should be near to actual marriage date. 

You can keep wedding card and marriage certificate as a proof of marriage .

Please feel free to call/revert in case of any doubts 

Thanks 
Abhishek Dugar
Abhishek Dugar
CA, Mumbai
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The person giving the gift needs to prepare the gift deed and it will be signed by both the parties.

You can take help of any CA for drafting gift deed. We can also help you in drafting gift deed. Please feel free to contact at caabhishekdugar@gmail.com.

Sender will need to check the law of the land. I am not an expert in US law, so I can't comment on that part.

Please feel free to call/revert in case of any doubts 

Thanks 
Abhishek Dugar

Abhishek Dugar
CA, Mumbai
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Hello Sir,

Please clarify if it is a Loan or a form a gift to help us understand your case.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP. 
Rohit R Sharma
CA, Mumbai
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Hello Sir,

If it is in the form of Gift then it will be fully taxable in India even though taxes are paid by your friend in his home country. 

In order to get the contact number you can avail the facility provided by the website, as I cannot share any of my personal details in order to follow the code of conduct. 

My apologies for the Inconvenience. 

Regards,
CA ROHIT R SHARMA. 
Rohit R Sharma
CA, Mumbai
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We think your question is already answered by other professionals.
Shyam Sunder Modani
CA, Hyderabad
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Rohit, I am not sure how signing part will take place. 
Abhishek Dugar
CA, Mumbai
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You can very well receive the money from your friend . Please ensure that this money is not on account of any business transaction .  Further there will be no tax in India .
Prakash Sinha
CA, Delhi
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This amount will be treated as gift as per section 56(2)(vii)  any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum shall be taxable u/h income from other sources.

The person giving the gift needs to prepare the gift deed and it will be signed by both the parties.
Shiv Kumar Agarwal
CA, Delhi
197 Answers
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