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Money sent by son from abroad when taxable

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Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2011 My son is serving abroad. He wants to gift some money to me and my wife and also wants to deposit some money in his saving account in India. Whether it invites tax of any kind like income tax gift tax etc. What should be done to save tax legally.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 July 2011 HE CAN GIFT MONEY TO HIS PARENTS AND ALSO CAN REMIT THE AMOUNT IN HIS SAVINGS ACCOUNT (NRE, NRO A/CS).
IN CASE HE IS AN NRI HIS INCOME IS FOREIGN INCOME IS NOT TAXABLE IN INDIA.

OUT OF FOREIGN INCOME RECEIVED BY HIM THERE WHAT EVER HE IS SENDING IN INDIA WILL BE TREATED AS REMITTANCE AND AS SUCH WILL NOT BE TAXABLE.

PLEASE CHECK THE TAXATION PROVISIONS ON GIFT IN THE COUNTRY OF HIS EMPLOYMENT ALSO.

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