Query regarding foreign remittance

298 views 4 replies
Hello! I have a query regarding foreign remittance made by relative in our bank account. My cousin is working in USA. If he remits his salary to my uncle's (his father) bank account, then can there be any problem for my uncle? My uncle, being a senior citizen, has no other regular income. If such foreign amount is credited in his bank account, then will it be a problem? Please answer. Thanks.
Replies (4)
A son is transferring money to his father account. How can there be any problem .
There is no income tax implication if the son transfers money to his father's account. Whether your uncle has any source of income or not is no way relevant.
1st receipt of income is relevant in determining taxability. here it is first received in USA and remitted to uncle's account in India. remittence never attract tax liability. uncle will not liable. Cousin's tax liability will be based on his residential status.

The transfer must be made from legitimate tax paid funds in USA. 

During an income tax assessment, the AO can ask his father to prove the genuineness and identiy of the donor and that of the source of funds. If not, the income can be treated as undisclosed income u/s 68 - read this post: Gift by NRI to Resident: Also be aware of Section 68 of ITA

 In case of gift, FEMA provisions will also apply - read this post for more clarity: FEMA Implications on NRI Gift Transactions: A Scenario-wise Analysis

Have in place a gift deed on plain paper executed in duplicate signifying mutual intention of both parties. 

Thanks!

AN NRI person has sold his property and there is a long term capital gain .The purchaser has deducted 1% on the purchase of property .The seller wants to remit all his money to UK ad is asking 15CB from the CA. 

Please reply on urgent basis . 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details