Inward Remittance tax

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1 Points Joined July 2024

Hi CaClubIndia, I have a Question and a Big Query. My brother Flew to United states and He sent me money through Moneygram. He is not a resident there nor a tax payer. He is holding Indian Indian Identity & passport. I want to know I received total of 20Lakh rupees Last year Am I payble any tax to govt of India? Im so much confused on this please help.

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On 24 July 2024 at 12:47 Report
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Master in Accounts & high court Advocate
9554 Points Joined December 2011

As a non-resident of the USA sending money to India, there are no tax implications for the sender in the USA. However, there may be tax implications for the recipient in India: 1. _Gift Tax_: If the amount sent is considered a gift, the recipient in India may be exempt from paying tax, as gifts up to ₹50,000 per year are tax-free. 2. _Income Tax_: If the amount sent is considered income (e.g., salary, consultancy fees), the recipient in India will need to report it in their income tax return and pay applicable taxes. 3. _Foreign Exchange Management Act (FEMA)_: The recipient in India must comply with FEMA regulations, which may require reporting the receipt of foreign funds to the Reserve Bank of India (RBI). 4. _Tax Deduction at Source (TDS)_: If the amount sent is considered income, the payer (sender) may need to deduct TDS in India, depending on the nature of the payment. To minimize tax implications in India: 1. _Use proper channels_: Send money through official channels like banks or authorized money transfer agencies. 2. _Provide documentation_: Ensure the recipient in India has proper documentation, such as a gift deed or invoice, to support the nature of the transaction. 3. _Consult a tax advisor_: The recipient in India should consult a tax advisor to ensure compliance with Indian tax laws and regulations. Note: Tax laws and regulations can change, so it's essential to consult a tax advisor or relevant authorities for the latest information.

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On 24 July 2024 at 19:02


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