Question ID : 36926

Remittance by a Foreigner

An Indian Person says some foreigner is depositing foreign currency in his account .What will be the consequencies if there is no business transaction

1. The chances of foreign remittance into Bank Account of person resident India are very unlikely as Banks will take utmost care when crediting the proceeds. Banks have to report the all remittances on periodical basis to Reserve Bank of India/Head Office. Customers/ Account holder have to explain the source and nature of remittance. 2. Whether it is business transaction or otherwise any unexplained credit in bank account will be treated as 'Unexplained Credit' U/s 68 of Income Tax Act and tax and penalty will be levied.