Sir,
- If daughter staying abroad (USA) transfers money to her father residing in India, is it taxable to father in India? If not, what is the limit ? Is it to be declared in IT filing ? What is the limit for each transaction ?
- Is it mandatory to obtain Foreign Inward Remittance Certificate for each of the transaction ? Where to file for FIRC ?
1 Answers
Dear Manoj ji,
The amount can be considered as Gift in this case and it is tax-exempt in India. You may declare such Gift amount in ITR under 'exempted income' category.
Kindly read :
https://www.relakhs.com/gift-income-tax-rules-detailed-guide/
FIRC (Foreign Inward Remittance Certificate) refers to a document which acts as a testimonial for all the inward remittances entering to India. Most of the statutory authorities use this document as a proof that an individual has received a payment inforeign currency from outside the country.
If the proceeds of inward remittance received are remitted in foreigncurrency itself to the beneficiary's banker, then FIRC is to be issued by the bank which has received the proceeds in foreign exchange, i.e., the bank which converts the foreign currency into rupees is required to issue FIRC.
I am not sure about the threshold limits on remittences. You may kindly check with your banker or CA.
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