Deposit amount to NRI friends account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 Sir I want to ask that my friend settled in NEW YORK & I want to transfer Rs.20Lac in his bank account so what procedure I can adopt & what are the legal formalties regarding to my friend & and me

Is could any income tax liability raised regarding this payment to my friend's end if Tax liability raised so Is am shown this amount as a loan to him.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 July 2011 First of all you have to state the purpose of transferring the fund from India to your friend. If it is against any services rendered then you have to deduct TDS provided you are covered u/s 44AB otherwise you have to take a certificate for foreign currency remittance to your friend. No tax implication in both the cases if the same is sent from your capital account and if it is from the income earned then regular income tax is to be paid on yearly basis.

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