CA
82 Points
Posted on 09 December 2013
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