My brother is a student in USA and earns stipend. He owes money to some banks in India for the education loan he took in past. To repay the amount should he send money from US to a savings account of his blood relative in India (and then the blood relative transfers it to the loan account) or should he directly transfer money form US to his loan account in India? What are the tax implications of both the methods? Thanks!
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Sending money from US to India
Replies (5)
If the relative falls within the definition of relatives in section 56(2) then there's no issue. if not it'll be taxable in the hands of recipient instead you term it as loan given and the same was repaid by relative by depositing in your loan account
Agree with rama krishna sir
If the student in US transfers money from his US bank account to his own education loan account in India, are there any tax implications that he will need to take care of? Thanks.
No tax implications
No tax implications for his own or blood relation as per the act
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