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Transfer of funds from us for expenses in india

Tax queries 407 views 2 replies

My sister is settled in US and is comming to India for a period of #4 weeks. Instead of getting TC's, can she transfer funds to my account. I will give her this amount in INR when she arrives in India. These funds are utilized by her for expenses while in India.

What is the max value that can be transferred without attracting any tax.

Abhijit

Replies (2)

She is Nonresident as per Indian Income Tax Act,1956 and the income transferred to you is earned and first received outside India and it is not taxable here.But i think if she transfer such large amount to your account,you will get notice from Income tax department requiring you to show the source of Income,then you can clarify IT department regarding such transfer.but Income transfered to your account from her account will not be taxable!

Please Note if an Income is Taxed Outside India for Non resident, Then "Remittance" to India is Not taxed again. I.e it is Tax Free.

So your Can Transfer the Amount to your Savings Account & Even You can also use the Funds, there is No restriction in Income Tax that Only Non resident I.e Your Sister Only to Use.

Lot of Non residents, who go abroad, Remittance the earnings to their Parents in India. Such income will not be Taxed in Parents Hands, since it is already taxed Outside in Non resident Hands.

All this is Explained in Section 6 Of Income Tax Act,1961-

You can Refer "Tip 4" of Tax Planning of Section 6 On this Link:https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-6

 


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