Question: Can I send money to my parents in India?

How much money can you send to parents in India?

—Darshan M. Yes, you can send $100,000 to your parents in India through a wire transfer. If you send it to your parent’s bank account in India, it will be accounted for as gift to parents.

How much money can be transferred to parents?

There is no restriction on the amount of money you can gift your parents under the Income Tax Laws of India. However, any income earned from such money, if invested by your parents, will be taxable as per the clubbing provisions.

Is money transferred to parents taxable in India?

Gifting cash or any sum to your child is exempt from tax. If the child is not earning enough income or is still studying, any income earned on the investments or assets purchased in his name will be taxable in your child’s hands. Hence, if the income earned is below the basic exemption limit, there will be no tax.

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Is money transfer from parents taxable?

Any gift received by an individual from his or her relatives on any occasion is exempt from tax. A relative, for this purpose, means brother or sister, spouse, parents and their siblings, any lineal ascendants or descendants of the individual or his or her spouse.

Can my parents transfer money to my bank account?

Any amount received by relatives is not taxable at all

So if a relative gives you gift in form of cash/cheque or in consideration, you will not have to pay any tax on the amount received. Example – So if you want to buy a house and your father/mother/sister/brother etc transfer Rs 20 lacs to your bank account.

Can NRI send money to parents in India?

Is gifting money to parents taxable in India? No, gifting money to parents in India is not taxable, as long as they are your parents or are relatives. Under the Income tax rules, gifts from NRIs to relatives in India are not taxable.

Can a son gift money to his mother in India?

An individual assessee can gift any amount to his/her mother without involving any tax liability in the hands of the donor or the donee. There is no limit up to which gift can be given to the mother by a son or a daughter. … The gift should be made by an account payee cheque or an account payee draft.

Can NRI gift money to relatives in India?

An NRI is allowed to receipt money as gift from a resident Indian under the Liberalized Remittance Scheme (“LRS”), within the limit of USD 250,000 in a financial year as prescribed therein. The donor and the recipient need not be close relatives.

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Is there any tax on money transfer to India?

India has decided not to tax remittances sent home, as a new Bill taxing money leaving the country came into effect. Since October 1, a tax of 5% is being imposed on money remitted overseas from India, and non-resident Indians (NRIs) were worried about having to possibly pay taxes for money sent to the country.

Can father gift money to son in India?

The relationship of father and son is covered under the definition of “specified relatives”. So a father can give any amount of gift to his son without any tax implications for both. … two lakhs in cash, he may become liable to a penalty equal to the amount of gift accepted in cash.

Can NRI transfer money to savings account in India?

As per the Foreign Exchange Management Act (FEMA) guidelines, an NRI cannot have a savings account in his or her name in India. … Opening an NRE or NRO account is, hence, a viable option for Non-Resident Indians. It can help NRIs in two ways. One, they can send their foreign earnings to India at any point.

Can I deposit 30 lakhs in my account?

Yes. The Income tax Department receives information through its AIR network , ie Annual Information Return. Hence , when Rs 30 Lakhs will be deposited…

Can I transfer money to my mother’s account?

Transfer of Money from son to Parent (Mother/ Father)

S to Mrs. M – no tax would be levied on transfer of this money as this is a gift from son to parent. Parent and Child are considered as a specified relative under the Income Tax Act and any gift from them is not chargeable to Tax.

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