Gift received in foreign currency

This query is : Resolved

Eswar Reddy S (Querist)
Follow

20 December 2013 Hi, Our client has received $.1,00,00,000 from relative . out of which 50% received through money order type 25% receved by hand. balance 25% received through bank account. Infact the person received the amount is a director of one company which is newly incorporated and not having bank account. Actually total amount received is towards share application money .amount received on 01.01.2009. Accounts are yet to be finalized and income tax returns are also to be filed. till date shares not allotted . as an alternative we want show loan or gift ? but loan disallowed u/s 269s . please suggest.what is the best alernative

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

21 December 2013 as long as the said money is received is received from a relative covered under Section 56, it is beneficial to show it as a gift only. No point in showing it as share application money or loan. Once the money is shown as gift in the personal accounts of the director, you can bring it to be books of the company as loan received from the directors or just let it rest in the personal accounts of the director only.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now