My son (NRE) has gifted Rs.50/-lakh to her mother in F.Y. 2018-2019 by sending remittance from USA and amount is credited to her in ordinary savings bank account in rupee. Hence we have filed ITR of mother first time due to income from interest on funds received. Mother does not want gift from son and she wants to return the same to son.
1. Whether mother can return and transfer gifted funds in foreign currencey i.e. in US$. Is RBI Permission or permission of any authority is necessary. Please advise if any circular or rules applicable from Government Authorities.
2. Son may get USA Citizen Ship in this financial year. Whether ITR status of son(NRE) will be changed from NRE to Foreigner. If so, whether son will get benefit of taxation which is available in NRE status for income earned in India after conversion of status to foreign citzenship.
3.Son has various insurance, unit plans, savings in India. He may get amount from hereditory assets etc.including from "Will" made by relatives. Whether all such funds can be remitted to USA when son has USA citizenship or in NRE status. Are there taxes on funds he may receive.
Son has choice to continue NRE status or apply for Citizenship. Which status is beneficial for him.
CAclubindia
