Hello,
A newbie question. I had to travel abroad last year to meet friends who supported my trip. They made inward remittances (code P0301) to my account in India for travel expenses. Now, when filing my IT return, do I have to consider these remittances as my income? I’m a freelance professional (with income significantly under the GST limit of 20L). If so, is there a document where I can find these scattered transactions listed (Form 26AS doesn’t have this info)? Thanks!
Hey @ee_user,
The amount would be considered a gift and if the value exceeds ₹50,000, it would become taxable as friends are not covered under the definition of ‘relatives’ as per the IT Act.
This would be added to your income under the head “income from other sources” and tax will be applicable at the slab rate.
Hope this helps!
Thank you so much for your response. The amount is indeed over 50,000. Do I have to declare the entire sum as an income, or only the excess above 50,000? (In other words, can I get a deduction of 50,000 on the inward remittance?).
Thank you again!
Hi,
When the value of the gift exceeds ₹50,000, the entire value becomes taxable.
Thank you for the explanation!