Is this taxable ??

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AMIT (Querist)

23 February 2013
Mr. X lives in Bangkok and Do Business
Now Mr. X want to Give money to his parents Mr. Y(Parents) by transfering money to NRI account maintained in india.

1. Will this be Taxable in the Hand of Mr. Y ?Please Explain in Detail

2. What if Mr. X Gives a Huge sum of money as Gift to his parents ? Please Explain in Details

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

23 February 2013 Gifts received from a relative is not taxable in India. A relative may be a non-resident. Only thing is that the genuineness of the gift can be questioned by the IT Department. In case the source could not be explained properly the said unexplained amount may invite tax as well as penalty.
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AMIT

AMIT (Querist)

23 February 2013 Sir,

What if
Mr. X (NRI) just Deposit the money in NRI account maintainted and then tranfer the money to its mother account ?

Will there be any tax or consequence to mother ??

@VaibhavJ

@VaibhavJ (Expert)

23 February 2013 Hi

No it is not taxable.

Pl refer link for details: https://m.oifc.in/Investing-in-India/Investment-Info/Business-Diary/Business-Diary-Treatment-of-Gifts-by-NRIs-to-Resident-Relatives-and-non-relatives-or-vice-versa

Thanks!!

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