Foreign university fee & living expenses
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 July 2017
I am joining an USA university and I am sponsored by my dad's cousin. He will be paying fee , boarding & living expenses directly to the university. Do I have any tax liability in India or USA.
10 July 2017
I am unaware of the tax implication of the transaction in the USA.
The amount being paid on your behalf to the foreign university is in the nature of a "Gift". It would have been paid to you but is being instead made directly to the University. In my opinion, this transaction is taxable in your hands, as the gift is being made by someone who may not be considered a "Relative" for the purpose of taxation in India. Please note that gift received from Brother or Sister of the either of the parents of individual is not considered taxable. Dad's cousin would not be covered by this.
However, you may choose to not offer this to tax from a practical stand point because you will be abroad and soon will be considered a non-resident.
My fellow experts may please add on to above advice.
The amount being paid on your behalf to the foreign university is in the nature of a "Gift". It would have been paid to you but is being instead made directly to the University. In my opinion, this transaction is taxable in your hands, as the gift is being made by someone who may not be considered a "Relative" for the purpose of taxation in India. Please note that gift received from Brother or Sister of the either of the parents of individual is not considered taxable. Dad's cousin would not be covered by this.
However, you may choose to not offer this to tax from a practical stand point because you will be abroad and soon will be considered a non-resident.
My fellow experts may please add on to above advice.
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