Nri account transfer
I am planning to build a house in my wife's plot. For that some amount of money (around 35 lakhs)is to be transferred from my father in law (working at saudi arabia).What is the proper way of doing it?
Can he transfer the money directly to my wife's account?
What is the maximum limit of money which can be transferred?
Is the money taxable?
Meanwhile Im planning to buy a car also.Can I use the same money from my wife's account(after my father in law transfers the money)?
My wife is working in an engg college.But for the years 2012 to 2014 ,although income tax was deducted from her salary.No return was filed.Can it be filed now?/ or is it necessary?
Abdul Raoof H
Asked 2 months ago in Income Tax from Alappuzha, Kerala
Your father in law can very well transfer you funds from Saudi Arabia. The Amount will not be taxable as it is a mere remittance of funds and no income arises here.
Your daughter falls under the definition of Relative too. Hence NO Tax shall be payable and you use the funds for construction as well as buying a car.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Talk to Rohit R Sharma
5.0 on 5.0
Your father in law can very well transfer the amount directly to your wife's account as a gift. Because your father in law is relative to your wife as per income tax act and gifts from relatives are exempt.Hence, there is no problem from income tax perspective.
You should docement this thing on stamp paper or even on an e-mail.
Just keeping in mind that while filing your wife's return, you have to show this as an exempt income in your wife's return.
Please feel free to call/revert in case of any doubts.
Thanks and Regards
CA CS B.Com
Talk to Abhishek Dugar
5.0 on 5.0
Yes he can transfer the money
There is no limit if he is having taxable income.
Yes you can use the amount.
She cannot file for the said year till notice for filing comes to her.
Talk to Shyam Sunder Modani
4.7 on 5.0
Your father in law can very well transfer the amount in your Wife account. Because your wife is covered in the definition of relative as per section 56.
Gift from relative is not taxable as per section 56.
You can buy the car from aforesaid amount.
There is no limit on transfer of funds.
For any further clarification feel free to contact us.
Talk to Shiv Kumar Agarwal
5.0 on 5.0