Tax on Amount deposited in my account

Tax on Amount deposited in my account

My cousin brother  will transfer amount of  Rs. 20 lakh from his account to my account. I want to know that do i have to pay tax on that amount.?

Asked 8 years ago in Income Tax

Sir,

This amount is for loan, advance,gift or any other income. Taxability depends on the nature of transactions

Vidya Jain

CA, Kolkata

1027 Answers

58 Consultations

Talk to Vidya Jain

Dear Sir,

Please let us know the following:

1. Whether money is in the nature of loan or gift?

2. What is the exact relationship of between you and your cousin?

if it is loan, then there is no issue. However, if it is gift then we need to see the exact relationship

Please feel free to call/revert in case you need further guidance.

Thanks and Regards,

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

Talk to Abhishek Dugar

The money transferred will be gift. The cousin brother is my father's elder brother' son.
I need the money to pay my college fees in SGD.So, I have 2 options--
a) The cousin brother transfer Rs 20 lakh as gift to my account and then I will pay the college fees from my account.
b) The cousin brother will directly pay the college fees in SGD.

Which option is better..so that i can avoid paying tax.

Asked 8 years ago

Dear Sir,

If your cousin gift the amount to you, it will be taxable. Your cosuin can transfer the amount to your father and he can pay your fees.

Please feel free to call/revert in case you need further guidance.

Thanks and Regards,

Abhishek Dugar

CA CS B.Com

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

Talk to Abhishek Dugar

If he will transfer the amount to my father's account. Do my father have to show that money in tax declaration.Please let me know whether it will be considered as income and is taxable or not.? 
How the transaction takes place. The cousin brother directly transfer the money to my father's account or is there any formalities to show it as gift.

Asked 8 years ago

You may request your cousin to transfer the money to your father's account from his father's account, so that the gift will be exempt from tax.