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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A father in India wishes to gift USD 50,000 to his son working and taxed in the USA to help him purchase assets. The remittance can be made from his Indian resident account under the Liberalised Remittance Scheme (LRS), which allows up to USD 2,50,000 annually. While the Indian parents won't face Indian tax, the son, as a US person, must report gifts exceeding USD 100,000 in a year to the IRS. Consulting a local CA/CS is recommended for specific advice.

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

Dr. J C Vashista (Expert) 16 August 2023
Did you seek opinion / advise of your chartered accountant, however, it is not a legal query ??

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