Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Transfer money to sister

Kirti Mishra (article) (23 Points)

17 January 2020

One year ago, I have taken 2 lacs rupees as loan from my married sister now I want to return 2.5 lacs to her via internet banking, I wanted to know what wil be the impact on her n on me as well from income tax point of view? What wil be the tds procedure?

Reply
Follow
Share

5 Replies

SOHAN LAL (Manger Accounts & Finance) (363 Points)
Replied 17 January 2020

Income tax is not applicable because it's waive of liability. TDS Also not applicable on such transactions.

Alok Singh (209 Points)
Replied 17 January 2020

Is the syster mentioned above is your relative ..means in blood relation. if not...so there will be some liability.

rama krishnan (12234 Points)
Replied 18 January 2020

Assuming that your sister fall under the definition of relatives, there won't be tax implications either on you or your sister

Kirti Mishra (article) (23 Points)
Replied 21 January 2020

Thanks everyone for your valuable comments

CA Arun Tiwari (Partner) (4730 Points)
Replied 25 January 2020

The exchanging occurring in this transaction is the nature of the Gift to the Relative so it is not Taxable and it is also a waiving off liability.