Comment on Taxation for Traders - Introduction

Nithin Kamath commented on 28 Jun 2013, 11:40 AM


Firstly it depends on if you intend to repay this money back or not .But in both the cases you have to show the source of funds received.

If the idea is to not return this money back(uncle has gifted you money), since he is your uncle who has given you money, it can be shown as a gift and this gift would be taxfree for you. (Uncle comes under the purview of a relative).

If you intend to return it back, show it as a loan on your balance sheet, which will basically be repaid back later.


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