If a son, who is US citizen sends money to his father in India, what will be the tax implication?



If a son, who is US citizen sends money to his father in India,through bank account, what will be the tax implications, specifically Income tax ?
Thanks in advance.

If a son, who is US citizen sends money to his father in India, what will be the tax implication?
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6 Replies to “If a son, who is US citizen sends money to his father in India, what will be the tax implication?”

  1. What ever money you made is taxed, if you send that money away to your father you still have to pay the tax for making the money.
    They really don’t care what you do with the money.


  2. Hi Dear

    Your father will not be Taxed in India as he is receiving a gift. The gift amount could be unlimited as he is lineal relation.

    If he invests this amount and earns income this income will be taxed as per Indian Income Tax Laws


  3. as per the situation mentioned this is the case of REMITTANCE according to the income tax law and rules. And the father being an indian citizen is not liable to tax.
    Because as such remittances are exempt from tax i.e. not being the direct source of income.




  4. The amount which you transfer to your father will be exempted in India because it will be considered as Gift in India. Money Gift is exempt when it received from relative. However if father invest that amount in India and earn the income on that amount. The earned income on that amount will be taxable. Example you transfer Rs. 10000/- to your father account in India. Father invest it in Fixed Deposit in India and earn Interest of Rs. 1200/- in India then Rs. 1200/- will be taxable in the hand of father and the father will have to pay tax if the other income are above the total taxable limit of Rs. 150000/- for current financial year in India. If other income plus income earned on that invested amount are below Rs. 150000/- then father will not to pay any tax on that amount.





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