Foreign income

When you send your tax (paid in USA) paid USD to your sons in India by bank transfers, whatever be amount, and how-so-ever frequently, what your sons receive from their parents is not income, and is not taxable in India.

Either of them can show/declare the amount received as gift/loan from their parents.

thank your sir.

but here his parents is not PR of their.

and they want to show whatever amount received as legally in india and ready to pay tax.

Will you please clarify some points?

The son is Resident of India?

Parents are Non resident of India and earning income in US?

They want to send some amount which is tax paid in US?

yes.

1. both son is resident of india.

2. yes parents are earning income in USA. (before 2 years go)

3. no. parents are not on PR basis. so no tax deducted. as they are working in private stores.

Well, the amount is income earned in US, earned about 2 years ago, and now its savings in their hands?

no....sir...

he went 2 years back...

form now evry months they wants to send 2 lac rs. to their sons ....in india

from this received money their purpose is below mentioned

first purpose is to buy new house in india.

secondly in future sons want to go U.K. ....

so they want to show their received money as a legally in india and make stronger their return for future reference.

I want just clarification about the money, which is to be sent by parents, i.e, 2 lakhs every month, what is its source?

parents are working in MOTELS.

and they are getting their salary after tax deducting.

" parents are working in MOTELS.      and they are getting their salary after tax deducting."

This is just I wanted you to re-collect.

So, that is the income of parents, which is already tax paid in US.

That money when you send though bank transfers in India to your son's account, it is tax-free gift to your son.

He can show that amount under exempted income while filling  his ITR. No tax liability will arise on such declaration.

Slowly and steadily, ( may be amount invested in FD or MF etc.) it will accumulate to sizable capital, when he can invest it in house property.

All the best.

thank you sir.

it means every month if he send 2 lac rs. ....means yearly 24 lacs rs. to his sons...then no need to worry about taxation.

Yes, not to worry at all; provided the money sent by parents should be through bank transfers/channel and that amount is tax paid/deducted in that country (US). That amount will be tax-free gift to the son in India.

thank you so much sir.

one of my client...who is building contractor. he is receiving income from construction work. now he had paid rs.2 lac to abc construction as a his part in one of the building scheme of abc construction. so how will we make entry of this transaction?