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My relative India transfers 8 lakhs to my Indian account in India. I will transfer $10000 to his son

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Arun Kumar

21 Points Posted on 05 July 2023

My blood relative in India will transfer 8 lakhs to my Indian account as gift. I live in USA and I will transfer $10000 to my relative's Sons account in US as gift is this transaction legal ?

Replies (2)

Quick Summary

This discussion clarifies the legality and tax implications of transferring money between India and the US as gifts. A gift of 8 lakhs from an Indian relative to your Indian account is generally tax-free in India under Section 56(2)(x) of the IT Act. Transferring $10,000 from the US to a relative's son in the US also needs to be checked against IRS rules. Repatriating funds from an NRO account is possible with proper documentation.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 05 July 2023

Treat both the transactions as independent.

For gift received by you from your relative in India depends upon your relationship as per sec. 56(2) of IT act. If falls under definition of relative, then the gift received by you will be tax free in India.

For transaction in US, check IRS rules.

Aashok Kumar Sharma

Finance/Compliance Consultant

75651 Points Posted on 08 November 2026

Gift from a relative to an NRI, then taken abroad:
• A gift of Rs 8 lakh from a blood relative (in the list) to your Indian account is exempt for you (Sec 56(2)(x)). Sec 9(1)(viii) (gifts to non-residents deemed to accrue in India) doesn't tax gifts from relatives.
• If credited to your NRO account, you can repatriate up to USD 1 million per FY from NRO (with Form 15CA/CB, CA certificate for the gift's tax status).
• The relative's gift to an NRI is within LRS (resident's gift to NRI relative). If credited in India to an NRO account, it's a domestic transfer.