Tax on NEFT/ Funds Transfer

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Guest

Guest (Querist)

06 August 2010 Sir

I Would like to know whether there will be any tax on NEFT/ Funds Transfers( Individual Account) from one bank to other bank within India. If so, what are the rates applicable and should we have the PAN Card for funds transfer if the transfer amount is Rs.1 Lac and above.Kindly reply.

Thanking You

Regards

Phani Kumar

Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 August 2010 Untill we know what is the purpose of the transfer we cannot comment on the taxability of the transfer.

ASHISH YADAV

ASHISH YADAV (Expert)
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06 August 2010 Mr. Aditya is right. There is no tax on NEFT or RTGS. Bank take some charges only.You clear your purpose

Having PAN is mandatory for more than RS.50000

Guest

Guest (Querist)

06 August 2010 the amount is recd. from Court as a compensation in Lumpsum and it should be distributed to family members.

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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06 August 2010 No taxes applicable as such on NEFT/RTGS transfers within India. However some banks charge the customer for such transfers & some do it free. It depends on the type of benefits provided by the bank on your account. If at all there is any charges, it is only a bank charge & not a statutory levy.

Banks insist PAN details at the time of opening bank accounts. As of now there is no statutory requirement to furnish PAN details for e- transfer/receipt of funds.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 August 2010 By way of what from a company?

Transfer as loan then check whether provisions of Section 2(22)(e) not attracted.

As dividend then DDT applicable.