Foreign remittane

PLease Help me .....

 

Mr. A works in China for last 3 years and receives his salary over there.He sends some part of his income to his father's savings account directly. What should be the tax treatment of his father as he want to file his return and willing to show this money as because he is investing the money in FDRs and NSC.

Replies (2)
Originally posted by : CS RAJAN

PLease Help me .....

 

Mr. A works in China for last 3 years and receives his salary over there.He sends some part of his income to his father's savings account directly. What should be the tax treatment of his father as he want to file his return and willing to show this money as because he is investing the money in FDRs and NSC.

assumed the tax liability of the person in china is discharged in china, and hence such remittence to his father from his tax paid income is to be treated as gift to father, hence no tax liability would arise in hands of father for receipt of such amount, 

 

however clubbing provision will apply on the interest portion earned with such investments, and such income would be deemed income of the son, and would be added to the taxable income of son. 

Thankxxx sir.

 

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