I have received Rs 10 lakhs from a friend of mine for helping me out with my startup. Do I have to …
I have received Rs 10 lakhs from a friend of mine for helping me out with my startup. Do I have to show this Income in my return and pay tax on it?
NO. You should not do that.
The amount from your friend is not technically 'earned' by you. However, any sum of money received from a person who is not your blood relative is fully taxable.
So, what you have to do is treat this amount from your friend as a loan. Even if you are not paying him back, ask him to sign a loan agreement. That way, you won't have to pay income tax on that amount.
And later on, you should also pay your friend interest every year(on paper) and claim it as deduction. You can pay back the loan (on paper) any time.
