Amount send from abroad...Urgent Sir!!!

This query is : Resolved

Rajesh (Querist)
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25 May 2011 Respected Experts,
I have doubts on the following queries.
1)Mr.A is working abroad (say middle east countries) he sends money around Rs.50000 monthly to his father Mr.B who is in India out of his savings. Pls. tell me how i have to treat it as income on the following situvations.
a) If Mr.A sends the whole amount only for the maintenance of his father Mr.B, in such a case whether it becomes income of the father which has to be shown as income from other sources?
b) If Mr.A sends only a part of amount say Rs.20000 for the maintenance of his father and the balance Rs.30000 for his own future security. In such a case whether Mr. A is liable to pay tax on Rs.30000 which he sends monthly, so Mr.B has to file Mr.A's income tax return in the capacity of Representative Assesse?
c) If the whole amount of Rs.50000 is send by Mr.A only for his own future security, whether he is liable to make income tax payment?
Thanks & Regards,
Rajesh.

U S Sharma

U S Sharma (Expert)
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25 May 2011 If DTAA is there between the country of earning and india, and tax is paid on such income there, then no tax india,

in absence of DTAA or nature of tax paid, all such remitence is taxable in india.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 May 2011 a) Mr. B is not liable to pay income tax in India on the amount received fro Mr. A as per explanation (v){relative}section 56 (2)of the Income tax Act,1961.
b) If the monthly amount of Rs. 30,000/- is deposited in any interest bearing securities in India, income thereon is taxable and to be offered under the head 'income from other sources' either by Mr. A or by Mr. b depending on whose name the amount is deposited.
c) In view of the above Mr.A is liable to declare the income generated out of the amount if deposited in income generating securities.

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