I recently founded a company. My stepfather (NRI) is willing to provide financial support for the company that the best way to get money in my name or company name. it’s like a donation, what will the tax treatment of these reg
The points to keep in mind.
1) All transfers NRI / investments in India is exempt from tax.
2) All income generated is taxable in India.
Now, in light of these rules, it is recommended that your father-in-law to invest directly as a shareholder of the company. In this way there will be no tax on investment. But you must remember that are declared in annual profits, he must pay taxes on the income generated, the income in India. At a later stage, it can sell its stake to his daughter, who also do not donate to tax.
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