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Tax implications for sending money from USA to India


ashok gupta   19 February 2020

ashok gupta

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In view of Income Tax what are the tax implications for sending money from USA to India by a son to her mother.
Please also provide monitory limit for the same.

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prasad Nilugal (Accountant and GST Practitioner . )     20 February 2020

prasad Nilugal
Accountant and GST Practitioner .  
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If  Son  is  NRI   then  he can  open  NRE (saving )   Account  in the Indian  bank ,  one can  deposit   Income deemed  to  be earned  outside India  in this  Account ,However  you can not  deposit  Indian rupee in this account ,you only can deposit foreign  currency which will be converted in to Indian rupees . The Interest earned on the balance  at the end of  quarter  is free form Income Tax  ,   NRI can send his remittance form abroad  . 

For all above he must be NRI .For monitory limits  and current  Income Tax implication  you confirm from  bank 

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ashok gupta   20 February 2020

ashok gupta

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Please provide tax implications on his mother also

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prasad Nilugal (Accountant and GST Practitioner . )     20 February 2020

prasad Nilugal
Accountant and GST Practitioner .  
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Joint NRE saving  account  with  resident  Indian ( Mother)  is  not  permitted .

avater

Nandakumar K Konkar (Partner)     20 February 2020

Nandakumar K Konkar
Partner 
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Son living in US has option to open NRE or NRO a/c.

The difference between NRE & NRO accounts is that while an NRE account is a bank account opened in India in the name of an NRI, to park his foreign earnings; whereas, an NRO account is a bank account opened in India in the name of an NRI, to manage the income earned by him in India. Son may open a NRE a/c in single name or with another NRI (whose interest income is exempt in India) & a NRE a/c jointly with his mother & transfer funds from NRE to NRO a/c. Interest on NRO a/c is taxable in hands of son in India (no tax for mother, for whom it is gift from son). An NRE account allows you to transfer funds to another NRE account as well as to an NRO account. You can transfer funds from an NRO to another NRO account, but you cannot transfer funds from an NRO account to an NRE account.

 

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ashok gupta   22 February 2020

ashok gupta

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Whether money received by his mother can be invested in immovable property by her sole name


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