My son born in India obtained US citizenship before 7 years. He also holds PIO status. He has NRE AND NRO Saving Bank Account's. My mother or my unmarried 71 years old sister wants to gift him INR 40,000-50,000. Obviously, cheque should be deposited in his NRO SA. Can he receive this cheque? Is gift deed necessary? If so, on Judiccial stamp paper of Rs 20/- is OK? Is it to be notorised? hop over to this site
An alternative way to claim for tax relief is to claim for the Foreign Earned Income Exclusion. This is more commonly used by expats who earn income overseas - but to qualify, you must spend a minimum number of days outside the US each year, and you must be able to demonstrate ties to the country you earn income from. pop over to these guys
To send money abroad, you will need a Passport, PAN card, outward remittance form, bank statements, supporting documents for the remittance (tickets, invoices, etc.) and Form A2. Moreover, you also need to agree to the anti-money laundering and KYC guidelines.
While PayPal may be a good option to pay or receive payment for purchases online, they do not allow you to transfer money to individuals. If you'd like to transfer money abroad, you may want to consider a specialist international money transfer provider like Wise.
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There is no tax on any amount you send to individuals who are your blood relation. These could include your parents, grandparents, siblings and children. Close family, like spouses and in-laws, are also included. However, if an NRI sends money to somebody who is not related by blood, then there is a tax implication. An amount over Rs 50,000 per year is subject to taxation in the hands of the receiver.
The exchange rate margins and transfer fees are the main costs to be aware of when sending money with Western Union: the company does not charge any additional fees. However, you may be charged origination fees by your bank and the recipient's bank may issue landing fees. Senders who pay for their transfers using credit cards may also be charged cash advance fees by their card issuers.
Also, it isn't recommended to transfer funds to an NRO (Non-resident Ordinary) account because the interest you earn on an NRO account's fixed deposit is also taxable. You just need an NRO account to hold your income in Indian currency. In case you really need money for some expenditure, then only you should transfer foreign currency (Dollar or Pounds) converted amount to NRO account.
Resident individuals are eligible to remit funds outside India under the LRS scheme, subject to certain terms and conditions. The scheme is not available to corporates, partnership firms, trusts, etc. If the remitter is a minor, the LRS declaration form must be countersigned by the minor's natural guardian.
If you want to send money securely to India but don't want to do so over the Internet, a money order is a great option. A money order is a printed, pre-paid certificate that can be mailed to your Indian recipient for cashing. Money orders can be purchased at banks, gas stations, grocery stores, the post office, and other third-party locations.
Once you have money in your PayPal account you may want to withdraw it to your regular Indian bank account or card. There may be a fee for this service, depending on exactly how you want to process the withdrawal. Here are the PayPal India withdrawal fees for consumer accounts:
I was informed that when a Resident Indian gifts to a Relative in USA who is NRI or Person of Indian Origin, it does not attract gift tax laws of USA. Only when the amount received is more than 100000 US $, the same is to be reported to US Tax authorities. Pl confirm
Also, there is no limit on the amount of money you can send to your parents. As per the FEMA rules, any amount sent as a gift to eligible relatives will be tax-free. Anybody outside the list will attract a tax liability if the amount exceeds Rs 50,000.
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