transfer of money from NRI account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2009 Kindly plz. help me with regard to the tax aspects in the following case:

An NRI individual is transfering money from his/her NRI account to his/her domestic account in India and then issues cheque for about Rs. 4 to 5 lacs from domestic account to his/her relative in India without any consideration from relative. i.e., in return the NRI individual is not getting anything. How can we do tax planning for the relative receiving the money in this regard. The family of the relative consists of individual, spouse and two major unmarried daughters (salaried).

what would be the tax implications for the relative if the cheque is issued directly from NRI account?

CA Anand Sarda

CA Anand Sarda (Expert)
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11 December 2009 With regards to Income Tax, If the assessee is receiving gift from his relative either in cash or kind, then he is not subject to any income tax irrespective whether he is receiving money from NRI Account or through domestic account.

The condition is he should receive money from relative.

and with regards to FEMA Act, I dont know the implication.

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2009 do we need to prove that the amount we received is gift to the IT department?