An NRI who is working in DUBAI. since last 9 years, he send money to her wife in india around Rs.20000p.m. ie. 2,40,000/-p.a. will such amount in the hands of her indian resident wife be taxable.
IF NOT IS THERE ANY LIMIT for such receipts.
8 Replies
Rachit
(Analyst)
(913 Points)
Replied 05 May 2010
Not Taxable in the hands of his Indian wife. No gift tax liability provided the NRI is able to substantiate his source of income
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 05 May 2010
What??
Buddy, they are husband-wife?? How can any amount paid by a husband to his wife can be taxable in the hands of wife??
So, it is taxable to her husband in dubai only...
praveen
(Chartered Accountant)
(6971 Points)
Replied 05 May 2010
yes pin money given is not taxable in the hands of the spouse. Even clubbing doesnot apply if she makes any interest, dividend or profit from using such money received from her husband.
JAYESHKUMAR J BHATT
(Owner)
(35 Points)
Replied 06 May 2010
According to me any legitimate amount sent by an NRI to his own family or his own NRE / NRO Account is tax free. Legitimate means he / she would have earned this amount outside India by legal sources which he /she can prove in the case required.
Any income from investment in India out of such receipts is taxable in India on the hand of recipent.
Jayesh Bhatt (NRI)
termpapers
(Manager)
(30 Points)
Replied 06 May 2010
According to me any legitimate amount sent by an NRI to his own family or his own NRE / NRO Account is tax free.
CA Shiv
(Business Controller)
(2987 Points)
Replied 06 May 2010
Ask him to sent as a gift.... and interest income if any will b clubbed with her husband....if its used for the household exp than no tax liability for anyone. Also there is no limit of such receipt..
For better stuff ask him to open NRE account and transfer to india. it wont be taxed at all.
JAYESHKUMAR J BHATT
(Owner)
(35 Points)
Replied 06 May 2010
NRI RECEIPTS has no connection with where the amount spent in India, it is 100% tax free. If an interest income from Bank FDR OR other Securities or Profit from shares or any other securities and if this income (not receipts that has been recived from abroad) exceeds minimum amount of taxable income after deducting deductions applicable, balance amount will be taxable in the hands of family memers and/or NRI himself if this interest or profit arised in India. By becoming merely NRI or RBNOR, does not qualify for full exemption of tax in india.
prashanth
(student)
(28 Points)
Replied 21 March 2011
Sir my question reg nri is that what if salary is directly received in account of any of the family members without getting creditted to his nri/nre account
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