Transaction- White Money Discussion Property News & Community Talk

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Rizvi

Saturday, December 20, 2014 11:01 AM

Dear Gents,
I am living abroad in KSA.
One of my cusion is asking to send money to his account to use it for car purchase.
He will use it for the purpose of showing the transaction as White Money.
What i need to know, is there any legalities involved in such act that might create problem for me in future?

Please need your kind comments /expereince if any.

Jazka Allah

Regards

Rizvi

Saba replied on Saturday, December 20, 2014 11:13 AM

If you have to throw then by all means do that, you are not getting it back? If you relative in black business then you are also going to be it's victim.

Many Thanks

Rizvi replied on Saturday, December 20, 2014 11:16 AM

They are not in any sort of black business.
sure i will get the money back.

ASTONISHED replied on Saturday, December 20, 2014 01:50 PM

MR RIZVI !IF YOU HAVE SO MUCH CONFIDENCE ON YOUR COUSIN AND FULLY DETERMINED TO SEND MONEY THEN DO IT.WHO IS HOLDING YOUR HANDS ? WHY ARE YOU ASKING FROM THE WHOLE WORLD? STRANGE BEHAVIOR TO BE HONEST

iam23m replied on Sunday, December 21, 2014 03:11 AM

You will not getting back money.
money given to friend=money lost or = friend lost

ahmed replied on Sunday, December 21, 2014 03:25 AM

u are grown up and definitely if are capable of earning, so u r sensible enough too...take a decision urself.

nms replied on Sunday, December 21, 2014 05:39 AM

Please don't involve money even in brothers

Rizvi replied on Sunday, December 21, 2014 09:02 AM

thanks for your comments

Clarification:-

Brother, i am not aware of any legalities that can impact such transactions later on.

This is the main reason of question, I am asking if some one faced any problem while doing that.

Khair khawah replied on Sunday, December 21, 2014 09:22 AM

You should always send money into your own account. This way in the future, if you buy a house or a plot and if income tax department asks you about the source of your income, then you can only prove it if you sent it to your own account. If you send it to another person's account, he will get benefit of it, which is what your cousin is trying to do. Remember, any remittance from abroad does not entail tax, so it is white money. Income tax dept. will not legally accept your proof of overseas job for that transaction. You have to prove that you transferred it into your account to prove it. It is legal and tax free for the person who is receiving the amount in his account. So, don't be fooled into this situation.

Jan replied on Sunday, December 21, 2014 11:55 AM

Or do send the money into your own account but either let your relative show that money is borrowed from you with documented proof of it.

Jan replied on Sunday, December 21, 2014 03:45 PM

Every one is not cheater in Pakistan people' do trust on people and run big businesses on trust, I myself had invested with someone in Businesses as a silent partner but profit was not handsome and I asked the capital back wich was returned to me right and then.
Where as everyone was telling me that forget the profit I will not even get the original money back.

SIM replied on Sunday, December 21, 2014 03:49 PM

Mr Khair Khwah is spot on. Take his advice.

kaka replied on Sunday, December 21, 2014 03:50 PM

Salam,
I understand he will show money you sent him as remittance and then buy car and show it as proof of income. The only issue is how he will pay you or your family in Pakistan. If he does a bank transfer of the same amount then this will be dubious on his bank statement at a later stage. You send him 50 lac. He buys a car. Then he transfers 50 lac into your (or your family's) account. So his bank statement shows 50 lac coming in and 50 lac going out in quick succession. This is dubious and will alert authorities. If the amount is small say 5-6 lac then this should not be a big problem. If he is paying you cash then again no problem.

I do not see any legal issue on your side. You sent some money to your cousin and that is it. If you send this money to your own family (wife etc) then your family has proof of white money that they will need while purchasing house, car etc in the future.

I am not very experienced and have never done such a thing before but have heard that remittance is a common way of showing white money. You may want to get other's opinions as well.