Income Tax on payment from a local friend

  • Thread starter Thread starter iRohan
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My case is diff. I never paid him but he still got to pay me, he paid via neft, so should I refund the same via neft and take cash to save the tax?
 
that would be the safe thing to do.
 
If you never paid him & he wants to give you something then you should be paying gift tax, I guess. Cash would be a way of avoiding it..
 
yeap. 😀 i mean lots of people advertise their bank account details online. anyone can transfer them money without their permission. 😀 think of the consequences if they are not able to return the money back 😀 without tax liabilities. 😀
 
Yes. If at all you are asked, you can say it was a simple hand loan which was returned and can be shown via statements... Logically, should not be a problem - as you can show it is not an income* Disclaimer - This user has no legal expertise
 


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