Amount received from abroad

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1 Points Joined May 2023

hi, friends...

 

My client recived funds from usa friends during f.y 2024-25 an amount of rs. 8465000/-. whats is the tax implications and how to report such funds in itr ...pls guide ??

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On 22 May 2025 at 11:20 Report
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Master in Accounts & high court Advocate
9060 Points Joined December 2011

To determine the tax implications and reporting requirements for the funds received from a USA friend, we need to consider the following:

Nature of the Funds

- *Gift or Loan*: Are the funds received as a gift or loan? If it's a gift, we'll need to consider the tax implications of gifts from non-residents.

Tax Implications - *Gifts from Relatives*: Gifts received from relatives (as defined under the Income-tax Act) are generally exempt from tax. -

*Gifts from Non-Relatives*: Gifts received from non-relatives (not being relatives) are taxable if the amount exceeds ₹50,000 in a financial year.

Reporting in ITR - *ITR Form*: The recipient would report the gift in the relevant ITR form (e.g., ITR-1 or ITR-2).

1 - *Disclosure Requirements*: The recipient would need to disclose the gift amount, donor's details, and relationship with the donor Key Considerations -

*Documentation*: Maintain documentation, such as bank statements, gift deeds, and correspondence, to support the gift transaction. - 

*Tax Compliance*: Ensure compliance with tax laws and regulations, and consider consulting a tax professional if needed. 

Additional Requirements - *FEMA Regulations*: Consider Foreign Exchange Management Act 

(FEMA) regulations regarding receipt of funds from abroad. - *Banking Channels*: Ensure the funds are received.

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On 22 May 2025 at 14:35


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