Kindly clarify the following
My son-in-law has been working in the USA for the past 3 years. He has an NRI account with city bank Hyderabad,and he used to send money to this account from USA. The dollars will get converted into Rupees and then credited to the account. He is transferring the money 'online' in city bank to his wife's bank account with SBI. Kindly inform whether the amounts received by his wife are taxable.
Thank you.
J A PRASAD
1 Answers
Hi Prasad Ji,
Do you mean to say that from NRI savings account, he is again transferring the monies to his spouse's Savings account?
Kindly note that these transactions can be considered as GIFTs.
Gifts are tax-exempt.
But, any taxable income generated by this corpus is clubbed to your Son's income and taxed accordingly.
Kindly read:
http://www.relakhs.com/gift-income-tax-rules-detailed-guide/
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