Mr. Aryan, a non-resident, received foreign currency equivalent to 85,000 from his friend, a resident Indian in January 2024. The same was paid by…

CA Final · Direct Tax Laws and International Taxation · MTP · November 2024
Mr. Aryan, a non-resident, received foreign currency equivalent to 85,000 from his friend, a resident Indian in January 2024. The same was paid by such resident from his bank account in Country X and was received by Mr. Aryan in his bank account in Country X. The friend also gifted a Gold Chain to Mr. Aryan in Country X. Fair Market Value of Gold Chain on the date of gift was - 95,000. Are the gifts received by Mr. Aryan taxable in his hands under the Income-tax Act, 1961? Assume no DTAA exist between India and Country X.
(A) Yes; ₹ 1,80,000 would be taxable as Income from other sources.
(B) Partially; ₹ 85,000 received from resident friend would be taxable as Income from other sources.
(C) Partially; only - 35,000, being cash gift in excess of 50,000, received from resident friend would be taxable as Income from other sources.
(D) No; such gifts are not taxable in the hands of Mr. Arihant under the Income-tax Act, 1961, since they are received outside India.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

Partially; ₹ 85,000 received from resident friend would be taxable as Income from other sources.

Topics: Double Taxation Relief, Non-Resident Taxation, Capital Gains

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic