Hi , My friend is buying new home , for that some work order has to be assigned to some person for 17lacs Where the 7lacs will credit to my account and 10 lacs he will show as he paid the ammount to me.
Actually this work order amount to be go to builder , as some constraint about taxes .
He wants to deposit to my account.
My question is , if i take this amount is there tax i have to pay ?
as i am a salaried person and paying already in 20% quota ?
A your friend is buying a property, why you wish to transect the deal with your account? Let the payment be crystal clear, by you transferring loan amount to his account and he may proceed further. In that case no tax liability of any kind will be over your head.
I fully agree with the previous commentator. You may have various problems because of this. Why can't he perform all operations from his account? Is he so reluctant to pay taxes? I'm sure that if he uses your account, he will be taxed as well. I really don't understand what you want to achieve ... You are just looking for unnecessary problems for yourself. Although when I bought myself a house, I didn't have such difficulties. The whole procedure took me about a week. Within a week I had already changed the siding, as well as the railings in my already new house. I hope the whole process went well for you ...
CAclubindia
