Gift by an Indian to his/her relative settled abroad Taxable or Not ? And up to which amount it is Tax free ??
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Quick Summary
This discussion explores whether gifts sent from India to relatives living abroad (NRIs) are subject to tax in India. Generally, gifts received by NRIs in their foreign bank accounts are not considered taxable in India as the transaction is completed outside the country. The conversation also touches upon specific scenarios, such as gifting proceeds from a property sale after paying capital gains tax, and whether such remittances are subject to Tax Collected at Source (TCS) under the Liberalised Remittance Scheme (LRS).
W.r.t to gifts received by non-residents by way of remittance from India were not chargeable to tax in India since the gift transaction was complete only when the money was received by the non-resident in a foreign bank account outside India. So the income in the form of gift of money remitted from India was neither received in India by the non-resident nor accrued in India nor was it deemed to have been received or accrued in India. It was therefore not chargeable to tax in India in the hands of the non-resident.
I have a related question.I am a resident of India and my daughter is an NRI being a citizen of USA.I want to sell a property in India which is in my name and pay the capital gain tax thereafter and then through a gift deed deposit the amount in NRO bank account of my daughter.Can she remit the money to her USA bank account without TCS under USD 1 Million limit of USA.Logically ,since the donor has paid all the taxes payable in India and can submit the proof of the same to the Bank,TCS should be attracted.For views please
some typo errors in my query which is reproduced below with corrections .Please ignore my earlier query
I have a related question.I am a resident of India and my daughter is an NRI being a citizen of USA.I want to sell a property in India which is in my name and pay the capital gain tax thereafter and then through a gift deed deposit the amount in NRO bank account of my daughter.Can she remit the money to her USA bank account without TCS under LRS limit of USD 1 Million per annum.Logically ,since the donor has paid all the taxes payable in India and can submit the proof of the same to the Bank,TCS should not be attracted.For views please
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