Is this taxable

Its your income and taxable in your hands only. 

Further, as you have transferred amount to friend's account, it will be in the nature of loan.

If its gift; then it will also be taxable in the hands of your friend under the head 'Income from other sources'.

Originally posted by : CA Abhilasha Bhagat
	Its your income and taxable in your hands only.  Further, as you have transferred amount to friend's account, it will be in the nature of loan. If its gift; then it will also be taxable in the hands of your friend under the head 'Income from other sources'.

Thanks for the quick response. But this is the share value for him not loan. So in this example if I will pay tax only for Rs.30000/month aswell my friend will pay for Rs.30000/month. So any problem doing that ?

Thanks bro. This solves my queries.

** Close this thread now

hello,

CA abhilasha bhagat kindly update your knowledge.

My freind u r liable to pay tax on whole Rs. 60,000/- per month

this is a case of diversification of income.

if u r transferring Rs. 30,000 per month it means in whole year 3,60,000 Rs. this will also taxable u/s 56(2)(vii).

so u will liable to pay tax on twice.