Nri

lina abood (Querist) 26 January 2012 This query is : Resolved
DEAR EXPERTS,
CAN FATHER WHO IS LIVING IN INDIA TRANFER TO HIS SON WHO IS LIVING IN USA (NRI) GIFT?
IN CASE THE REPLY IS YES ,THEN DOSE THE SON HAS TO PAY TAX ON THIS AMOUNT TO USA GOVERMENT ?
WAITING FOR YOUR ADVICE
TAHNK YOU ALL

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Shailesh Kr. Shah (Expert) 26 January 2012
CAN FATHER WHO IS LIVING IN INDIA TRANFER TO HIS SON WHO IS LIVING IN USA (NRI) GIFT?

Answer: Yes, He can.
As per Section 56(2)(vii) of the Income Tax Act,1961, Gift by father to his son is exempt from tax.

IN CASE THE REPLY IS YES ,THEN DOSE THE SON HAS TO PAY TAX ON THIS AMOUNT TO USA GOVERMENT ?
Answer:No, Since already it is from Capital(Tax Paid) of his father.

Raj Kumar Makkad (Expert) 26 January 2012
Gift can be made in the given case and no tax liability accrues over the donee.

lina abood (Querist) 26 January 2012
THANK YOU ALL

Devajyoti Barman (Expert) 26 January 2012
yes rightly advised above...

Vineet (Expert) 27 January 2012
Only one addition- consider forex regulations also before proceeding. There is a limit under FEMA for remission of gifts overseas, which I understand $2 Lakhs per annum. (kindly recheck)