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HM Accountax Ltd
HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 350
Experience:  I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
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Have a friend who has about 5000 pounds and wants to sell

Customer Question

Have a friend who has about 5000 pounds and wants to sell it, but since he is returning to India wants me to pay him in his India account. Is this legal ?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: nothing else.
Submitted: 15 days ago.
Category: Tax
Expert:  HM Accountax Ltd replied 15 days ago.

Hi,

I am an advisor at JA and happy to assist you.

Ideally, he should take it with him as he is going back and his money will be considered white. However, If he can give you in writing about it then you can send the money to India. I am not sure if the money will be considered white in India or not. He need to check the position in India.

I hope this answers the query.

Regards

HMAT

Customer: replied 15 days ago.
Friend here in the UK is returning to India. Wants to exchange Pounds for INR. He wants the INR in Indian account in India and will transfer pounds from UK account to my UK account.I have an Indian account and can pay into his India account. But is this allowed? Is it legal? How can I justify receipt of these
Expert:  HM Accountax Ltd replied 15 days ago.

Why don't he transfer from his UK account to Indian account. In this way there will be trail of money and these days money is received in India in seconds.

Customer: replied 15 days ago.
He feels since we are friends it’s easier this way. Since I’m also in need of some financial assistance - I have some Inr in India which he is aware of. The amount we are speaking about is 5000 pounds.
Expert:  HM Accountax Ltd replied 15 days ago.

Just document it and it should be fine.

Customer: replied 15 days ago.
I can show it as a gift ? Receipt.
Expert:  HM Accountax Ltd replied 15 days ago.

No, Its not a gift. Just document the fact that you needed money here and he needed money in India so this transaction was executed.

Customer: replied 15 days ago.
If I go for a mortgage application? How do I justify the receipt of 5k pounds
Expert:  HM Accountax Ltd replied 15 days ago.

You need a letter from your friend stating that he gave you money.