Requirement of Fift Deed in NRI case for funds transfer to Resident parents

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This query is : Resolved

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This discussion clarifies the process for NRIs transferring funds from their NRO accounts to resident parents for maintenance. It confirms there's no upper limit for such transfers. While a formal gift deed isn't typically required, even for amounts up to Rs 20 lakhs, the bank transfer itself serves as sufficient evidence. Receiving parents may optionally show the funds as exempt income under 'gift from relative' in their ITR.

rmalhotra

rmalhotra (Querist)

26 January 2024 Sir,
A NRI individual wants to transfer some amount say Rs 9 lacs from his NRO a/c to his resident parents here for their maintenance and well being. Hence queries :-

1. Is there any upper limit up to which he can give funds from NRO a/c to his parents for their use ?
2. Will the receiving parent be required to show this receipt while filing their ITR ?
3. Is there any requirement to create any formal gift deed for this transaction ?
4. Will there be any requirement to create gift deed if amount for transfer to parent is even more say upto Rs20 lakhs .?
5. Will there be any requirement to create evidence of transaction which otherwise is already a bank transfer only.?

Pls guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 January 2024 1 No limit.
2 Not required. May be shown under exempt income schedule as gift from relative.
3 Not required.
4 Not required.
5 Bank transfer can be the sole evidence.

Message likes : 1 times

rmalhotra

rmalhotra (Querist)

27 January 2024 Thank you Sir. Good to get it . Stay Blessed always.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 January 2024 You are welcome...
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