Arthgyaan

Supporting everyone's personal finance journey

How much money can NRIs in the US gift to their parents in India in 2024?

This article discusses the mechanics and tax exemption rules applicable to US-based NRIs who wish to gift money to their parents in India.

How much money can NRIs in the US gift to their parents in India in 2024?


Posted on 14 Jan 2024
Author: Sayan Sircar
7 mins read
📢Join 2500+ readers on WhatsApp and get new post notifications!

This article discusses the mechanics and tax exemption rules applicable to US-based NRIs who wish to gift money to their parents in India.

How much money can NRIs in the US gift to their parents in India in 2024?

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.

📚 Topics covered:

How much exemption can NRIs in the US get when they gift money to their parents in India in 2024?

USD 18,000 per person is the annual Gift Tax Exemption amount for 2024 as notified by the IRS.

This amount is offset against the lifetime Gift and Estate Tax Exemption limit. This limit is currently at $13.61 million (up from $12.92 million in 2023). To understand how this article can help you:

Uses of this gifting process could be:

Warning: Money sent to parents becomes part of the parent’s assets. At the time of death, others like the siblings of the NRI child might make a claim against these assets. We have discussed this point in detail here: Who should invest in the name of parents to save tax? Who should not?

What has been the historical exemption limit for gifts?

Serial # Calendar Year Exempted Amount ($)
1 2002 11,000
2 2003 11,000
3 2004 11,000
4 2005 11,000
5 2006 12,000
6 2007 12,000
7 2008 12,000
8 2009 13,000
9 2010 13,000
10 2011 13,000
11 2012 13,000
12 2013 14,000
13 2014 14,000
14 2015 14,000
15 2016 14,000
16 2017 14,000
17 2018 15,000
18 2019 15,000
19 2020 15,000
20 2021 15,000
21 2022 16,000
22 2023 17,000
23 2024 18,000

Download as CSV

You can use this table to plan the total offset against the lifetime Gift and Estate Tax Exemption limit.

Related:
How much money can NRIs gift to parents in India?

Also read
Should you stretch to buy your dream home?

FAQs on the mechanics of gifting to parents

Is a gift deed necessary when NRIs gift assets to parents?

There is no tax payable by the gift receiver. However, to be on the safe side from the Indian tax perspective, it is better to create a gift deed.

Which account should be chosen to transfer money to India?

The US-based NRI can transfer money directly to the bank account of their parents. The NRI should not be a joint holder in that account since then it will not be a gift.

If the parents die intestate, i.e. without a will, other legal heirs like siblings of the NRI can lay a claim on the gifted assets. If multiple heirs exist, it is prudent to make a will.

Is there further tax on the gifted amount from NRI to parents?

There is no tax at the point of gifting on the parents. But there will be tax out of any income from the amount that will be paid by the parents since that will be in their name.

Did you know that we have a private Facebook group which you can join for free and ask your own questions? Please click the button below to join.

What's next? You can 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.

To understand how this article can help you:

If you have a comment or question about this article

The following button will open a form with the link of this page populated for context:

If you liked this article, please leave us a rating

The following button will take you to Trustpilot:

Discover an article from the archives

Previous and next articles:

<p>This article analyses the Bajaj Auto share buyback announced in January 2024 to decide if it is possible to make a quick return by entering the stock before the record date.</p>
News Calculator
Bajaj Auto Buyback: is it an easy way to make money or lose money?

This article analyses the Bajaj Auto share buyback announced in January 2024 to decide if it is possible to make a quick return by entering the stock before the record date.

Published: 11 January 2024

6 MIN READ


<p>This article shows you an easy way to calculate how big a house you can buy based on your family’s combined monthly salary.</p>
House Purchase Loans
Home Loan Eligibility for Joint Applicants: how to buy a bigger house

This article shows you an easy way to calculate how big a house you can buy based on your family’s combined monthly salary.

Published: 17 January 2024

5 MIN READ


Latest articles:

<p>This article discusses the NFO of the Motilal Oswal Nifty Defence Index Fund which is the second fund tracking the Nifty Defence Index.</p>
Review Mutual Funds
Motilal Oswal Nifty Defence Index Fund NFO is now open: should you invest?

This article discusses the NFO of the Motilal Oswal Nifty Defence Index Fund which is the second fund tracking the Nifty Defence Index.

Published: 15 June 2024

5 MIN READ


<p>This article discusses the Nifty EV & New Age Automotive Index covering the EV ecosystem or new-age auto technologies in India and whether these stocks are suitable for investors.</p>
Review
NSE launches the Nifty EV & New Age Automotive Index. Should you invest?

This article discusses the Nifty EV & New Age Automotive Index covering the EV ecosystem or new-age auto technologies in India and whether these stocks are suitable for investors.

Published: 14 June 2024

7 MIN READ


Topics you will like:

Asset Allocation (21) Basics (8) Behaviour (14) Budgeting (12) Calculator (25) Case Study (6) Children (17) Choosing Investments (37) FAQ (12) FIRE (13) Fixed Deposit (9) Gold (22) Health Insurance (5) House Purchase (33) Insurance (17) International Investing (13) Life Stages (2) Loans (20) Market Data (9) Market Movements (20) Mutual Funds (50) NPS (9) NRI (19) News (20) Pension (8) Portfolio Construction (53) Portfolio Review (27) Reader Questions (8) Real Estate (7) Research (5) Retirement (38) Review (19) Risk (7) Safe Withdrawal Rate (5) Set Goals (28) Step by step (15) Tax (61)

Next steps:

1. Email me with any questions.

2. Use our goal-based investing template to prepare a financial plan for yourself.

Don't forget to share this article on WhatsApp or Twitter or post this to Facebook.

Discuss this post with us via Facebook or get regular bite-sized updates on Twitter.

More posts...

Disclaimer: Content on this site is for educational purpose only and is not financial advice. Nothing on this site should be construed as an offer or recommendation to buy/sell any financial product or service. Please consult a registered investment advisor before making any investments.

This post titled How much money can NRIs in the US gift to their parents in India in 2024? first appeared on 14 Jan 2024 at https://arthgyaan.com


We are currently at 415 posts and growing fast. Search this site:
Copyright © 2021-2024 Arthgyaan.com. All rights reserved.