FOREIGN EARNING RECEIVED FROM DAUGHTER - IS TAXABLE

Tax planning 623 views 2 replies

Dear Sir,

My daughter reside in Africa from last few years. She will be sent some foreign earning to my and my wife and son account near about 1 crore. Is it taxable in our income tax return ??? 

And please guide me is there any other compliances - waiting for valuble reply, Thanks

Replies (2)
Quick Summary
Money received as a gift from a daughter living abroad is generally tax-exempt in India for parents and close relatives under Section 56(2)(x). Proper gift deeds, banking records, source documentation, and FEMA compliance should be maintained for large foreign remittances.

Money received as a gift from a daughter to her parents and brother is exempt from income tax in India under Section 56(2)(x). To maintain compliance, it is highly recommended to formalize the transaction with a gift deed, document the source of the funds through bank records, and ensure all transfers are conducted through authorized banking channels to adhere to FEMA regulations. Always consult a tax professional to finalize the documentation before the end of the financial year.

Thanks Sir, for your valuable reply


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