My son is in USA. Can he send me 10000 us dollars to my account or my wife\'s account. a) Must we have to pay tax. b) If we invest in shares in my name or my wife\'s name and sell the shares after one year only can we do that He is sending it for our maintenance. Where all we can invest. Is there a Cap for his sending per year.
1 Answers
Hi,
1 - He can transfer the amount. It can be considered as a Gift and is tax-exempted in India. (assuming your son has paid applicable taxes on these funds, in USA).
Read:
http://www.relakhs.com/gift-income-tax-rules-detailed-guide/
2 - You can invest in Equity (Shares). Any gains on equities after one year of holding period are tax-free.
3 - I believe that there is no max limit as such. But if the total amount that is transferred in an year is more than $ 14,000, these can be subject to IRS ( Internal Revenue Service ) reporting in USA.
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