Payment to 3rd party by Cheque / E-Transfer

If someone wants to give a reasonably large sum of money (e.g. 5L) to another person by A/c Payee cheque or electronic transfer, how can it be explained? Is any documentation to be maintained by the giver?

The payment may not be returned e.g. made on sympathetic grounds, for a long-term association etc.

Replies (1)

it will amount to gift to non relative and the other party has to take it as income from other sources.

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