I live in Poland and remit money regularly to my brother in India, who takes care of agricultural property in our village. He deposits this money in an account in his own name. Does he need to pay tax on it? Also, does he have to pay tax on any interest earned on this money? My brother has other sources of income, besides agriculture and files a tax return every year.
—Pushpinder Bajwa
Transfer of money to your brother without any consideration will amount to a gift in the hands of your brother. There is no gift tax in India. However, income tax is payable on any sum of money, movable property or immovable property received by an individual without consideration (that is, without a quid pro quo), except gifts received from a relative. Under the income-tax law, the term ‘relative’ includes:
i. spouse,
I live in Poland and remit money regularly to my brother in India, who takes care of agricultural property in our village. He deposits this money in an account in his own name. Does he need to pay tax on it? Also, does he have to pay tax on any interest earned on this money? My brother has other sources of income, besides agriculture and files a tax return every year.
—Pushpinder Bajwa
Transfer of money to your brother without any consideration will amount to a gift in the hands of your brother. There is no gift tax in India. However, income tax is payable on any sum of money, movable property or immovable property received by an individual without consideration (that is, without a quid pro quo), except gifts received from a relative. Under the income-tax law, the term ‘relative’ includes:
i. spouse,
