GIFT TO NRI SON BY FATHER after RETIREMENT.

Q & A Forum › Category: Banking › GIFT TO NRI SON BY FATHER after RETIREMENT.

Vipan kumar verma asked 6 years ago

My friend who was in class iv post retired from govt job. Received rs.33/-lac retirement payment. He has three sons, wants to give equally, my question is that what is the tax implication on nri son . He wants to gift rs.11/- lakh equally to his three sons. What is the tax implication on gift to nri son. Secondly how much he can send legally tax-free amount to his nri son in a financial year I.E. Without paying any tax.

1 Answers

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Sreekanth Staff answered 6 years ago

Hi, The Gift transactions are tax-exempt. It is a tax-exempt case even for his NRI son w.r.t Indian tax law. Advisable to declare this gift amount under 'exemption income' in his ITR (NRI son). Related articles :

I think, under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March). The limit for sending money from India to US is US $125,000 per year. RBI URL link.

Vipan kumar verma replied 6 years ago

THANKS, SIR FOR GIVING ME GREAT INFORMATION TO SHARE IT WITH SR.CITIZEN WHO RETIRED FROM IV CATEGORY.