Hi, I received a fund from foreign person in my bank account for Rs. 125000, on behalf of my friend and then transferred to his account. Do I need to show this in other income? If yes, under which section I can exempt the taxes for the funds I received.
@Bharti_Vasvani can you help
Any amount received as gift from “non-relative” is exempt upto INR 50,000/-, if amount received is more than 50k, then the full amount will be taxable under IFOS.
This is not income in your hands, its just you have received money on behalf of someone and transferred the same to them, hence not taxable. This is not your income so no need to report it in the ITR. But avoid receiving money from foreign individuals on anyone’s behalf to stay away from notices as now everything gets reported under Annual Information Statement.
Hope this helps!