GIFT TO NRI SON

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A father in India wishes to gift USD 25,000 to his son, an NRI working in the USA, to help him purchase assets. The discussion clarifies that there are no Indian income tax implications for the father. However, the son should check for any gift tax liability under US IRS laws. The bank will deduct Tax Collected at Source (TCS) on the foreign remittance under the Liberalised Remittance Scheme (LRS).

Rajesh Chopra

Rajesh Chopra (Querist)
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15 August 2023 Dear Sir

My son ( NRI) is working in USA and taxed as per US laws. He needs money to purchase certain assets in USA for his needs.

Can I as a father Gift him and remit USD 25,000 from my resident account in India as a normal foreign currency remittance.
Will there be any tax implications for me or for him as per law. Also what is the limit that I can remit money as a Gift to him

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 August 2023 No tax liability over you under IT act, but check any gift tax liability over SON under IRS.
Bank will deduct TCS over the foreign remittance under LRS scheme.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 September 2024 Good Luck.

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