Income tax on funds transferred from overseas

Generally we can loan money to our friends, we can write a document with all the details which can be shown as proof.

But as you both live in two different countries, you cannot write such a document now, and as the money is from an NRE account, maybe this tranasction will not be treated as loan.

Even if it is treated as loan, as he is going to invest it, he will have some gains which will be added to his income, so he will pay tax.

Originally posted by : sk
	ya...it's an income for ur frnd...so he will be liable to pay tax...not you...if u send money to ur own account or account of any close relatives then it won't be taxable... otherwise taxable

just to confirm, if I were to transfer money into my parents or sibling's account it is not taxable?