Taxation of foreign remittance

If the remittance is from a specified relative of the recepient as listed in section 56, then only your friend will be entitled to exemption. If not he has to pay tax on IFOS. In either case he has to prove the identity of the person remitting. If it is a specified relative for which exemption is claimed., donor will have to give an affidavit confirming the relationship and the gift. NRI donor can obtain stamp paper and affirm before the consulate of India nearest to him.

Whether taxable or not, you have to also prove the source of funds of the donor that he has the capacity to gift such an amount. If this cannot be done, then the whole remittance will be taxed as unexplained source.

AGREED WITH SUNIL