13 December 2012
I am a NRI. Being more specific i am staying in SINGAPORE from 1st July 2009 and been to INDIA for a maximum period of 25 days thereafter in any year for visit.
I am willing to gift 15 Lacs through inward remittance to my dependent parents (Senior Citizen) who are resident in india but they are not taxpayers and dont have any other source of income.
Pls let me know the tax implications in the hands of receiver if any and also help me with the GIFT DEED format which i need to execute either before remittance or after remittance.
14 December 2012
You can transfer your money to your NRE Account in India and then the amount can be transferred to the respective accounts of relative.
The gift shall be exempt from tax but however There are some judgements of Supreme Court against the assessee stating that such gifts may be treated as Cash credit under the hands of receiver, but if you do a proper Documentation, as regards
1) drafting of gift deed and 2) other documents which proves the "source of gift" eg your Income Tax Statement of Sigapore 3) Documents to prove that there is Love and affection between Donor and donee , then the gift shall surely be exempted in the hands of donee.
For more queries or to deal with the issue more specifically or in case you have any query relating to NRE Account, mail me at mehul@raseshca.com
19 December 2012
Presently I am residing in singapore, and don't hold any NRE account in INDIA hence remmittance would directly to my parents account resident through wire transfer.
Love & affection can not be proved between son & mom, its natural.
Please help me with the GIFT DEED format which i need to excecute in singapore. Also let me know whether i need to execute it before remittance or after remittance.
CAclubindia
