I am an NRI, over a period of 5 years I sent some money to my NRE account in India and some money to my Father's savings account in India. My parents used money from both the accounts for their living expences, loaned money to others for interest and also bought some property. They still hold some amount in the form of cash (old 500s and 1000s). As everyone know we need to exchange the old notes or deposit in bank the old notes.
Total amount sent to both accounts: 50 Lakhs ( approximatley 25L to my NRE account and 25L to father's savings account).
Income from loaning to others in the form of interest and other gains in India: 10 Lakhs (tax not paid on this, I know not paying tax may not appear correct but since I am abroad and my parents are not well educated they didn't cared about it and also I feel like it is late now to file taxes because this income is from 2013 and that income is anyway paid in black to buy property later, see below)
Property bought worth 35Lakhs: Registration value 15Lakhs (actual amount paid is 35Lakhs which means above 10Lakhs income + 10Lakhs from white is paid as black to seller)(10+10+15 = 35).
Remaining cash: 25 Lakhs.
So question is can we deposit this remainig cash directly into my parents account (technically this money is sent from abroad which is already tax paid) before Dec 30th ? Or will there be any consequesces ? (And my account is NRE, not NRO, so money cannot be deposited to my account in India).
In case of IT audit can we tell we withdraw money and kept cash at home for long time but finally deposited back to bank because notes are demonitized ?
Can money sent to my NRE account and withdraw by my parents considered as gift ? or should the money be sent to their account to be considred as gift ?
Appreciate your response,
Sri
CAclubindia
