Money received from friend will be taxable? It was transferred to builder on behalf of friend from nre account

Can my friend transfer money to my NRE account?

Short answer: No, If you are talking about depositing in someones (including family members) NRE account, you can’t. If you have NRE account yourself then you can transfer the same directly from your NRE a/c to his NRE account directly. The way to deposit is by depositing is in his NRO account with required docs.

Can my friend transfer money to my NRO account?

Can my friend deposit money in NRO Account? Yes. Your friend can deposit money in NRO Account as gifts in INR from any resident or NRE/NRO account holder is allowed in an NRO Account.

Is NRE account taxable?

Interest from NRE account is tax-free only for non-residents. As soon as you return to India, any interest earned on NRE account will be taxable. You can however opt for transferring your funds in NRE accountto the RFC (Resident Foreign Currency) account upon the return.

How much money can you transfer without being reported in India?

You can send up to $10,000 to India without reporting to IRS. However, under the Bank Secrecy Act, your bank will provide information on certain transactions over US$10,000 to IRS and report them as “suspicious transactions” to the US Government.

Can my friend in India transfer money to my NRE account?

Yes anyone can credit an NRE account from outside. Most Banks in Dubai should be able to do this [The charges maybe higher], there are other remittance services offered from leading Indian banks like HDFC, ICICI, SBI, Axis etc.

Can I transfer funds from my NRE account to my friend’s NRE account?

YES! NRIs can transfer funds from their NRE (Non Resident External) Account to their NRO (Non Resident Ordinary) Account. An NRE account allows you to transfer funds to another NRE account as well as an NRE to NRO fund transfer.

Can my friend deposit money in my bank account?

Generally speaking, anyone can deposit money into your savings account. Individual banks have different policies, but the vast majority will accept deposits into an account, as long as you have certain information, which may include the full account number and the full name of the account holder.

Is money received in NRO account taxable?

An NRE account is tax-free (no income tax, wealth tax, or gift tax) in India. On the other hand, the interest earned in NRO accounts and credit balances is subject to respective income tax bracket. They are also subject to applicable wealth and gift tax.

Is money sent to NRO account taxable?

The earning received through your NRO account is taxable at 30 % plus applicable surcharge and cess. Though there is an NRO taxation implication, you can benefit from the DTAA Agreement.

Do I have to pay income tax if my friend uses my bank account to transfer funds to a third party?

Yes it is taxable, if you were to transfer ₹5 lakhs to your friend’s account, he is liable to pay tax as that is more that the tax exemption limit of ₹2.5 lakhs as income in a year. It means that your friend made more than ₹2.5 lakhs in the financial year and will have to pay taxes.

Is money sent by friend taxable?

The first major rule which every person should know is that there is no tax to be paid on gifts received (cash or kind), if the amount of the gift is upto Rs 50,000 in a year. However if the total amount crosses Rs 50,000 . Then you will have to pay the tax on the total amount received (not additional).

How much money can I transfer from one account to another without raising suspicion?

A cash deposit of $10,000 will typically go without incident. If it’s at your bank walk-in branch, your teller banking representative will verify your account information and ask for identification.

Is it legal to transfer money to a friend?

US law requires banks and money transfer companies to report: Your name and contact information. The name and contact information of the person who sent you the money. If it’s a bank transfer, the financial details of the recipient, including SWIFT code.

How much money can I transfer from one account to another without raising suspicion India?

Usually, all series of cash transactions that are related to each other which value individually less than Rs 10 lakh and have occurred in less than a month and sums to a monthly aggregate that exceeds Rs 10 lakh is considered suspicious. However, this is not the only example of a suspicious bank transaction.

What is the maximum amount you can transfer in a bank?

Earlier, the maximum transaction limit was Rs 2 lakh for IMPS but the RBI has revised its guidelines. Now, a user can transfer up to Rs 5 lakh using this payment method.

How do I transfer large amounts of money from one bank to another?

A wire transfer is one of the fastest ways to transfer money electronically from one person to another through a bank or a nonbank provider such as Wise, formerly TransferWise. For a domestic wire transfer, you’ll need the routing number, account number, the name of the recipient and possibly the recipient’s address.

How can I transfer a large amount of money?

7 methods to consider when transferring large amounts

Automated clearing house (ACH) …
Bank-to-bank. …
Money transfer. …
Cash-to-cash. …
Prepaid debit cards. …
Foreign currency check. …
International money transfer service.

How much money can be transferred in a day?

6) You can transfer a maximum on Rs. 50,000 in a day without adding beneficiary.

How can I transfer 10 lakhs from one account to another?

A digital payment platform, Paytm, now offers this service where the users can instantly transfer money from their accounts or wallets to anyone. Paytm users can either transfer money from their wallet to one’s bank account or they can do UPI-based transactions through BHIM UPI.

Can I transfer more than 5 lakh online?

The new IMPS limit is ₹5 lakh per day, up from the previous limit of ₹2 lakh. The new limits come into effect from today, October 8, although banks have not updated their portals with these new limits yet. Check out the latest news and updates on Business Insider.

Why is there a limit on bank transfers?

Savings Account ACH Transfer Limits

Any attempted transfers over the limit result in a fee, which varies by bank. The banks and major financial institutions have imposed this limit because they consider your savings account to be subject to certain requirements.

How much money can you transfer from one bank to another online?

You can transfer a minimum of $1 to your bank, or your full balance if it’s under $1. You can transfer up to $10,000 to your bank account or debit card in a single transfer. Within a 7-day period, you can transfer up to $20,000 to your bank account or debit card.

Can I transfer a large amount of money online?

Money transfers can be completed online and in-person and allow individuals to send large sums of money from one person to another. Money transfers utilize a network of domestic and international banks and the money is processed through that network.

Can I transfer money to someone else’s bank account?

If you want to transfer money to someone else’s bank account, there’s a wide range of methods that you can use. Some traditional payment methods require the recipient’s full name, account number, and routing number, while alternative options only require an email address.

Can you transfer more than 10000 from one account to another?

More than $10,000 in transfers in a given year would flag an account for reporting to the IRS, the agency said in a press release. Wage and salary deposits won’t count toward that threshold, the Treasury said.