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Foreign transfer

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Kuchi Spandana

28 Points Posted on 09 March 2021

If X of Australia transfer to ,a Y of India ( where Y is brother of X's spouse) an amount of 25lakhs for further payment to other person.

NOT A GIFT for Y.

what are the implications?

Replies (3)

Quick Summary

This discussion covers the implications of a foreign transfer from Australia to India, specifically an amount of 25 lakhs intended for onward payment and not as a gift. It highlights the necessity of registering the transfer with the RBI and using authorised channels to avoid penalties under the FEMA Act. The conversation also clarifies that such a transaction is taxable, even if it's not a gift.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 09 March 2021

It is a foreign transfer and should be registered by RBI and the transaction should be done through authorised person otherwise penalty will be imposed under FEMA Act. But if it is gift then you can transfer upto 100000 rupees but as it is no gift it should be done through authorised person