Tax and Wire

Tax queries 609 views 4 replies

 "After you know how to send money home, then the question "what about tax issues?" may come to your mind. As per Indian income tax rules, since money sent from the US to India is already taxed, you will not have to pay any income tax in India. If money is sent to close relatives, the recipient will not have to pay gift tax. The bottom-line is that remittances from abroad to close relatives in India for personal uses will not attract taxation (but it might invite scrutiny in which case the recipient may have to prove that the remittance was made from abroad) in any form. Note that this is not professional advice and you should check with authorized taxation experts in India regarding this."

Is it true that amount recieved from Abroad through, we are NOT supposed to pay any icome tax if we can show that we have recieved the wire from abroad ?

Replies (4)

Thanks Sushant!! but i dont think there is any gift tax now.

 

Ok. Lets leave Gift Tax. 

I have individual customers from USA who are buying products from my webistes through a merchant processor { similar to ccavenue } and then I get my wire from that processor . Thats processor is based in USA.

Is it true that amount recieved from Abroad through, we are NOT supposed to pay any icome tax if we can show that we have recieved the wire from abroad ?

 

But at time in number of cas had come up in which assessee is harassed and asked to prove the remittance, therefore it would be better if proper audit trial is maintained

Prove the remittance ?

Prove what ?

I get my Tax Audit done every year.


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