How much money can NRIs gift to parents in India?
This article covers the mechanics for NRIs to regularly send or make one-time large gifts of money to parents in India.
This article covers the mechanics for NRIs to regularly send or make one-time large gifts of money to parents in India.
Disclaimer: Taxation is a dynamic concept, and the content of this article is valid on the date of publication and any subsequent updates. Always consult a professional tax advisor before doing anything that leads to taxes being due.
First, as blood relatives, parents do not have to pay taxes when they receive money from their children, NRI or residents. Any income from that income, say as FD interest, becomes a part of the parentās income in the future and might be taxable to the parent.
With that out of the way, here are some general rules:
We are only discussing remittance via legal banking channels. Carrying cash has its own set of limitations and required declarations that are not within the purview of this article.
An implicit assumption here is that the money being transferred is post-tax. If not, there are obviously taxes due on it to be paid in the NRIās country of residence.
Join the Arthgyaan WhatsApp community: You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.Your sending bank will automatically report large amounts remitted to India to the income tax authorities in your respective countries. For example,
There are generally no upper limits to the amount that can be transferred.
NRIs in the US must pay additional tax if they:
The latest rules are here: How can NRIs in the US gift money to their parents in India?
NRIs in countries other than the US do not have to pay taxes on remittances to India.
Uses of this gifting process could be:
Warning: An money sent to their parents becomes part of the parentās assets. At the time of death, others like the siblings of the NRI child might make a claim against these assets.
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This post titled How much money can NRIs gift to parents in India? first appeared on 30 Jul 2023 at https://arthgyaan.com