Am a student , Citizen of India and 21 years old, Unemployed still studying and wanna buy a car worth 6 lakh?
So i am crazy for cars, and i want a long car. I dont work and all, i am just a computer science student aged 21 and Living in India, i wanna buy FIAT LINEA worth rupees 6.6 lakhs On road price. I can arrange money but the only question is will the INCOME TAX department make any objections about where i got the money and why am i wanting a sedan. they surely not gonna get convinced if i'll say i am a car crazy! officially what problems am i gonna suffer?? if i buy the car. Thankyou!
Personal Finance - 1 Answers
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1 :
As you are of legal age, you are under the purview of the taxman. The question arises as to how you're going to finance the car. Obviously, you are not going to be eligible for a loan. In which case, the money is either yours through inheritance (for which you should have paid inheritance/estate tax) or through trust (no tax) or through a gift. Gift tax can be charged to the person who 'gifts' you the car/money. However, if you/your family have declared yourself to be a HUF (Hindu Undivided Family) then taxation rules are different. Best to spend INR 500 and get the legal advice from a tax lawyer or the opinion of a Chartered Accountant. As you can afford INR 660,000, this money would be well spent.
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