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Relating to foreign currency

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This query is : Resolved

BHANU PRAKASH (Querist)
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19 December 2024 Client-A is a Resident Peerson (individual)
Client-B is an NRI (individual)
Client-A wants to receive amount Rs.50 crores from Client-B. Client-B is aiso ready to give amount to Client-A. But there is no relationship. They are only Friends. In this siituation Please give proper advise to the below Questions

1) Whether Client-A can accept that amount without any limit?. If yes, In what Currency either in indian currency or in foreign currency

2)Is there any Procedural Requirements? Plese give the complete Procedure ( RBI permissions, Any FORMs Filing, etc)

3) Tax ipmplications regarding this matter

4) If there is any additional Suggestions , Please Suggest me

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 December 2024 Is it a gift or loan.
In case of gift it's taxable under income tax.
In case of loan The Reserve Bank may permit a person resident in India to borrow or lend in foreign exchange or rupees from or to a person resident in or outside India, if there are sufficient reasons.

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