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Money sent from USA taxable?

Nitin Gautam (Developer Analyst) (38 Points)

01 June 2010

Hi,

My brother is in USA, he gone there from his company for 2 Years. When he send money to me in my account, Is it taxable???
Do I need to show it in my ITR while filling tax?

I am software engineer by profession.

Thanks

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22 Replies

shibusap (52 Points)
Replied 01 June 2010

not taxable

praveen (Chartered Accountant) (6971 Points)
Replied 01 June 2010

I dont think it is taxable in your hand as it is taxable in your brother's hand. However if he is an NRI he would be exempt from it.

varun dev (student) (34 Points)
Replied 01 June 2010

no need to show it in ur ITR..

Rohit Bhardwaj (.) (163 Points)
Replied 01 June 2010

not taxable..

Nitin Gautam (Developer Analyst) (38 Points)
Replied 01 June 2010

Thanks For your reply..means I only show my Form-16 details in ITR.

No details of money that I recived from my brother from USA.

Thanks,

CA Manoj Tilokani (JOB) (163 Points)
Replied 01 June 2010

NO.. IT IS JUST REPATRIATION IN INDIA AND NOT AN INDIAN INCOME SO NOT TAXABLE

CA VINAY BANSAL (In job with KPMG) (289 Points)
Replied 01 June 2010

Dear,

In case, your brother had gifted the amount to you, then account for the same amount in your income and it is exempt under Sec 57. The result is that you will get your personal capital enhanced.

In case, it is shown as a loan, then u can clain interest deduction for that.

Rectify me if wrong anywhere.

CA VINAY BANSAL (In job with KPMG) (289 Points)
Replied 01 June 2010

Dear,

In case, your brother had gifted the amount to you, then account for the same amount in your income and it is exempt under Sec 57. The result is that you will get your personal capital enhanced.

In case, it is shown as a loan, then u can clain interest deduction for that.

Rectify me if wrong anywhere.

kantijain (Chartered Accountant in Practice) (385 Points)
Replied 01 June 2010

Dear Nitin,

You have not mentioned whether he has gifted u or given a loan to you. In both scenario, from the inforrmation provided by u it will not be taxable. there is no column in ITR to mention the same, however if it is gift, i suggest u to show as exempt income, so that tomorrow when an enquiry is made suitably u can defend ur case.

Regards

Kanti Jain

Nitin Gautam (Developer Analyst) (38 Points)
Replied 01 June 2010

While transferring the amount, he choose either "GIFT" or "FAMILY MAINTENACE" option.

Please suggest

CA Shiv (Business Controller) (2987 Points)
Replied 01 June 2010

Hello,

Its neither gift nor family maintenance or anything....

He has gone for 2 years. I think he has gone on contract there. Is he getting PDA or salary in USA. thts important. ALso he can send it to you. I will suggest to ask him to open NRE account and transfer the amount..

He has to pay tax on tht amount in India...

So he can transfer the same amount and u can utilise it here..... why u want to show it gift and all.

If you wnat to show as gift than any income from it will be clubbed in in ITR.

Nitin Gautam (Developer Analyst) (38 Points)
Replied 01 June 2010

Originally posted by : CA Shivang
	Hello, Its neither gift nor family maintenance or anything.... He has gone for 2 years. I think he has gone on contract there. Is he getting PDA or salary in USA. thts important. ALso he can send it to you. I will suggest to ask him to open NRE account and transfer the amount.. He has to pay tax on tht amount in India... So he can transfer the same amount and u can utilise it here..... why u want to show it gift and all. If you wnat to show as gift than any income from it will be clubbed in in ITR.

I am not showing it as anything...I specified that when we transfer money using Remit2India or ICICI Money2India services...they ask to choose the Purpose...where he choose either "Gift" or "Family Maintenance". He is getting there the Salary after deducting tax as per USA standards. He is also havinf SSN.