I need a help on Income tax. I working in Korea and I am planning to send my savings back to India to my parents. My annual Income is 32 Lakh INR. Out of which I am planning to send 20 Lakhs back to India. Is the amount received (20 Lakhs) by my parents is taxable in India ?
Obviously my parents are Indian citizen and I am planning to send 1 Lakh per month to each of them. Now my salary is not tax free in here(Korea), But when I send the amount back to India does my parents have to pay back the tax in India ? The Korean government has already deducted the tax and what I send back to India should be tax free? Isn't it?
I am planning to send the money back to India Via Western Union in the name of my parents. So, basically the taxation we have to consider would be of my parents (because they are receiving the money under their name) or mine (because I am earning and I have already paid the tax in Korea) ?
I am not sure of this but someone suggested me to open NRE/NRO account and send back the money under my name - So I will be sending the money from Korea to Myself in India(into NRE/NRO account) ? would this help me by anyhow in tax ?
BTW what is the maximum tax free amount I can send to India ?
Please do Suggest me the best method wherein I can evade the maximum tax! It makes no difference weather I send the money to myself or to my parents, but the most I care is to save the maximum on tax!
You can get the taxreflief for amount paid in korea. no problem .tell to your parents meet to chartered accountant they will calculate your income and tax liability...dont worry about amount transferred with name of parents...no tax liablity for them
Its not taxable in India. Your parents or you need not worry about that. However, let me add a peice of advise to the long list. Go for an NRE account. Not NRO. Interest on NRO account is taxable and the TDS shall be made on tht making it mandatory for you to file return here in India to get the amount bak sicne you cannot furnish Form no. 15H/G.