Gift to nri son

RAJESH CHOPRA (Querist) 15 August 2023 This query is : Resolved
Dear Sir

My son after completing his studies has recently started working in USA and is taxed as per US laws. He needs money to purchase certain assets in USA for his needs. Can I as a father Gift him and remit USD 50,000 from my resident account in India as a normal foreign currency remittance. Will there be any tax implications for me or for him as per law. Also what is the limit that I can remit money as a Gift to him

Thanks

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kavksatyanarayana (Expert) 15 August 2023
No such limit to gift him and for a son, tax is not applicable in my view. It is better to consult a local CA/CS.

T. Kalaiselvan, Advocate (Expert) 15 August 2023
According to the Liberalised Remittance Scheme, you are allowed to send no more than USD 2,50,000 in a given year.
n the current case, the Indian parents are not US persons and are not liable for US tax. Accordingly, gift tax does not apply. As a US person, your son is required to report any gift (or bequest) from a foreign person if it exceeds USD 100,000 in a year