HI,
I am an NRI and have transferred funds to my parents and inlaws in the past and these funds have stayed with them until now.
I looked upon these as gifts to them for the purposes of IT calculation.
I now intend to invest in Stocks and hope to be getting these funds for that purpose, and offcourse with their consent.
What is the best way to do it to keep clear of IT glare.
Can inlaws and my parents transfer it to my spouse as a gift for this purpose.
Yes, but it will be considered as gifts for IT calculation.
TRue Mr. Baig,
But wont this account for fraud because in effect this is a gift to my wife(which i cannot give except as a loan)and routed through parents and inlaws.
Rgds
Nope.
As per section 56(2) of the income tax act
Gift received from relatives are not taxable.
Relatives means
– Spouse of Individual
– Brother & Sister of Individual
– Brother & Sister of Spouse of Individual
– Brother & Sister of either of the parents of Individual
– Any Lineal ascendants or descendants of the individual
-Any Lineal ascendants or descendants of the spouse of the individual.
Note : If any income received from gifted amount & if that income is taxable then it will be clubbed in donor income & not in the income of donee.
CAclubindia
