Tax on FD amount received from one of the friend?


KF Rookie
What if anyone make FD of money received from his/her friend? Is that received money added to income of that person who received it?
If person A earns 1 lakh/month and person B earns 40k/month. Person A transfers 70k/month to Person B's bank account and so on.
Now Person B opens multiples FD of 2 lakh each in his/her own bank account and earns let say Rs.52k as interest (from all FDs) after 1 year .
That FD amount includes the amount earn by person B as well as amount received from person A.
So, Is there any chance that Person B will get income tax notice? And what all things need to mention while filing ITR by Person B to avoid any notice?


KF Mentor
First of all, if a person receives any amount more than Rs. 50000 from anyone but family, then the amount is taxable.

In this case, Person A transfers Rs. 70k to Person B.
  • If Person A & B are part of a family (father, mother, son, daughter, brother, sister, husband, wife or inlaws), then the amount received will not be taxable. Only the interest of Rs. 52k will be taxable.
  • If Person A & B are not part of a family, then the total of Rs. 70k (amount received) + Rs. 52k interest will be taxable.
Updated Point 2.
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