Funds Taxability from Indian parents for NRI
Funds taxability from Indian parents for NRI, As per the income tax rules in India, individuals residing abroad can receive money from their parents living in India without being liable for taxes, given certain conditions are met.
Under the provisions of the Income Tax Act, 1961, gifts received from specified relatives, including parents, are exempt from taxation for the recipient. Therefore, if an individual receives money as a gift from their parents, it will not be subject to taxation in India, regardless of whether the recipient is a resident or non-resident of India.
Funds taxability from Indian parents for NRI:
It is important to note, however, that if the received money is consider as income (such as salary, interest, dividends, etc.), it will be subject to tax in accordance with the relevant tax laws. In such cases, the recipient, even if a non-resident, will be require to pay taxes on the income earned in India.
Furthermore, if the individual possesses investments in India, such as bank accounts, stocks, or property, any income derived from these investments will be subject to taxation in India, irrespective of the individual’s residency status.
It is advisable for non-residents to seek guidance from tax experts or chartered accountants to gain a better understanding of the tax implications associated with receiving money from India, considering their specific circumstances.
To Visit https://www.incometax.gov.in/
