can we make DD from our friends/relatives bank a/c ??

[Abhi]

Hi All,

can we make DD from our friends/relatives bank a/c. after passing them
required money, to submit in YEA ?

Is it legal or there can be any problem by doing so ?? Can YEA take
any action against it ??

Regards,

[AM]

Dear Abhi,
Never underestimate the power of Income Tax dept. who can chase your
relative, for taxes. The only exception, I have seen is, if you have
cash forex. which you encash. Any amount, over one lakh is given by
certified cheque in Delhi. That exchange receipt is the proof you have
that money credited to your relative's account is not their income.
Otherwise it can be seen as money laundering.


I will tell you one incident which was very common in late 1990s. If
you lived overseas, there were businessmen, who would give you 5 Kgs
Gold + Import Duty on it + Your air ticket + plus some X amount as
commission. Very generous deal indeed.
This looked like a clean deal to many NRIs. But later on their 2nd
trip to India, many of them got into Income Tax hassle as the capital
gains on gold was to be paid by them personally, the following year.


The morale of the story is, don't get your naive relative in IT
trouble. It is not worth it.

Take care,
Arnab M

[Abhi]

Hi Arnab,

Thanks for a quick reply.

Actually I am not going to be there in India before March-Apr 2010,
But I need to submit the allotment money before that.
And I am under impression that we can submit this money by DD only,
YEA does not accept cheques.

Now since all money is in my account and I can not be there to sign on
form for making DD, so I was thinking to transfer the money to my
friend/relative account and then they can make DD and submit on my
behalf.

Is it also possible that YEA can also raise voice on this case if DD
comes by somebody's else bank a/c. ??
Also Pls guide about the correct steps for my case.

Thanks,

> > Regards,- Hide quoted text -
>
> - Show quoted text -

[AM]

Dear Abhi,
I do not think, YEA would care, from whose account the money has come.
IT Dept. cares.

For you the solution, which I follow myself is to send a signed cheque
to your family to make the demand draft.or may be a signed blank
cheque.
The DD application, does not need to have your signature, as long as
the cheque which carries your signature matches. If the Bank Manager
creates problem, then fax an authorization letter to your relative,
advising the bank to issue the DD.

The process is simple, as long as your family has a signed blank
cheque from you.

HTH.
Arnab M

[Abhi]

Thanks a ton !!!!

This blank cheque didnot clicked to me.... Shall be following it. It's
quite simple.

Again many thanks.

> > > - Show quoted text -- Hide quoted text -

[Yogi]

Abhi,

I think u can transfer the money to your parents/sibling's account and
they can deposit DD on your behalf. Within a Hindu family if u
transfer money then there is no IT obligation as long as you are
transferring white money. If you are transferring money from abroad
then it depends on from which country u r doing it. With most of the
country in Europe, America and Australia region, India has double
taxation treaty which means if you have paid taxes abroad then you are
not liable to pay taxes in India. But if you are transferring from one
of the country where there is no tax treaty then it can be an issue.

Regarding DD, many banks offer DD at home service. You need to put in
the online request and then they deliver the DD to your home. So u
don't need to go to the bank to get the DD. I think ICICI bank offers
this service.

Regards
Yogesh Tiwari

[Ashish Mishra]

Hi Yogesh,

Thanks a lot for your reply.

I spoke to ICICI Bank customer care and they confirmed that, with
Authorization letter and Signed Cheques by me,
If any friend / relative of mine, goes to bank, then they can provide
DD.

but I forgot to ask, that I need to give this signed cheque in favour
of "YEA" or in favour of my friend's name, who will make DD for me ??

Thanks in advance.

> > On Dec 13, 12:56 am, AM <arn...@gmail.com> wrote:- Hide quoted text -

[Amit]

Hi Ashish,

The DD will be made in the name of YEA and not in the name of your
relative. There are two columns in a DD-one is for the payee which
will be YEA and the other would be payer, which is your relative or
you.

Amit