Is a fixed amount deposited every month in sa is taxable?

Hi ,

My friend would be depositing a fixed amount every month in my savings account  as part of our mutual agreement. So would this be considered as a salary an taxed ? I am already having a salary account with another bank where my salalry gets credited monthly.

Can somebody help clearing this doubt.

Thanks

- R

Only the amounts received from your employer would be considered as salary.  Amounts recd other than the employer shall be taxed udner income from other sources.

What is the nature of the amount the fredind would be depositing.  the whole of the amt recd from your freind would be shown under Income form other soruces & would get added to your total taxable income & tax would be calculated accordingly.

you should first disclose the nature for what your friend will be depositing a fixed monthly amount in your account?

Is it repayment of any loan? or any business? or what?

 You first need to disclose this to be able to provide you accurate solution.....

Thanks Giridhar and Mahesh for your Valuable Replies.

Actually i have taken a loan for his personal purpose and he would be depositing monthly premium in my SA account.

Br

Ravi 

Whter the amount of EMI paid by you & the amount repaid to you by your freind is the same.  If the amount recovered form your freind is more than the EMI paid you,  then the excess would be taxable in your hands.

Yes Giridhar my friend would be depositing in my savings account amount bit more than the EMI i have to pay.Also the emi will be automatically paid from salary account and the deposited amount will be used for my expenses.

So from you comments i understand any amount deposited monthly apart from my salary will also be taxed under other sources catogery.Is there is any other options where i can make this amount non-taxable? i have no option taking by cash as he is in other state.

Thanks -R

No mr Ravi, not any amount deposited in your salary a/c would be taxable if you are able to provide proper explanation to the AO about the nature of the paymetn recd by you.  If you are receiving anything over & above your EMI from your freind then the excess would be taxable.

I dont understand one thing, that if your friend is able to pay the EMI amt in your account each month for the loan taken by you on behalf of him, then why didn't he himself take the loan in his own name.

Hi Giridhar,

Thanks for the info. My friend has just joined in govt organization and he is denied a personal loan so i have taken on his behalf.