23 February 2013
Mr. X lives in Bangkok and Do Business Now Mr. X want to Give money to his parents Mr. Y(Parents) by transfering money to NRI account maintained in india.
1. Will this be Taxable in the Hand of Mr. Y ?Please Explain in Detail
2. What if Mr. X Gives a Huge sum of money as Gift to his parents ? Please Explain in Details
23 February 2013
Gifts received from a relative is not taxable in India. A relative may be a non-resident. Only thing is that the genuineness of the gift can be questioned by the IT Department. In case the source could not be explained properly the said unexplained amount may invite tax as well as penalty. .
Pl refer link for details: http://m.oifc.in/Investing-in-India/Investment-Info/Business-Diary/Business-Diary-Treatment-of-Gifts-by-NRIs-to-Resident-Relatives-and-non-relatives-or-vice-versa
CAclubindia
