Gift of foreign currency received from nri son
Querist : Anonymous
Please, give your kind opinion for below mentioned questions :
An NRI sends 3,000 US Dollars from a foreign country to his mother in India.
He sends this amount with his friend , who is also an NRI, and coming to India for a short period.
This foreign currency is sent to his mother as A GIFT FROM A SON TO HIS MOTHER.
The mother now exchanges the foreign currency - US Dollars, in her own name, by filling her own name and other details in forms, showing the currency as her own .
She gets the exchanged amount credited in her bank a/c, after deduction of exchange fees.
Questions :
1) Is this kind of transaction valid and allowed in the eyes of laws and rules ?
2) - Can an NRI send and gift foreign currency, in this way, to his relatives in India ?
- Can such NRI’s relative in India, exchange such gifted foreign currency in India, in his/her own name ?
Is it ok ? Can they do this ?
3) Will such gift transaction need any written documentation ?
- If Yes, then how can it be possible, in absence of NRI? Because he is in foreign country.
4) Is this amount taxable in the hands of mother ?
5) Will the mother have to show this amount in her Income tax return ?
- If Yes, Where to show it ? - Under which head ? By writing what particulars for it ?
6) If she shows this amount in her income tax return, then which ITR form she will have to use ?
ITR-1 OR 2 OR 3 ?
(She has only bank interest and FD Interest, as other incomes. No any salary or any other income.)
Please, clear these confusions.
Thanks in advance.
Querist : Anonymous
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