My Son is only a student and he has studying in Singapore.He is major now he would to like to invest in shares and his mother gifted a sum of Rs.15/ Lakhs as Indian rupees and he has to purchase the shares of Indian domestic companies through HDFC Demat account and credit the same.I would like to know the taxation if he get dividend from this companies and how to say in his income tax return for 31-03-2027.
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REGARDING NRO INVESTMENT IN SHARES OF DOMESTIC COMPANIES
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The ₹15 Lakh gift from the mother is entirely tax-exempt under Section 56(2)(x). Dividend income earned by the NRI son will face 20% TDS at source (or lower under the India-Singapore DTAA if a TRC is provided). For filing the ITR for FY 2026–27, he should use ITR-2 to report the gift under Schedule EI and dividends under Schedule OS to claim any applicable TDS refund.
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