Remittances from abroad

Querist : Anonymous (Querist) 26 December 2011 This query is : Resolved
RESPECTED EXPERTS,
I RECEIVE REGULAR REMITTANCES OF US DOLLARS FROM USA FROM MY DAUGHTER AND HER HUSBAND THROUGH BANK. IS THIS AMOUNT TAXABLE IN INDIA?

AND WHAT IF IAM HOLDING THIS MONEY FOR THEIR BENEFIT ONLY?

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A V Vishal (Expert) 26 December 2011

I RECEIVE REGULAR REMITTANCES OF US DOLLARS FROM USA FROM MY DAUGHTER AND HER HUSBAND THROUGH BANK. IS THIS AMOUNT TAXABLE IN INDIA?

Ans. If it is a gift then it is not taxable.

AND WHAT IF IAM HOLDING THIS MONEY FOR THEIR BENEFIT ONLY?

Ans. If any income is derived from such holding then the income earned is taxable.

prabhakar singh (Expert) 27 December 2011
EXCELLENTLY AND COMPETENTLY ANSWERED BY Mr. A V Vishal

Sanjeev (Expert) 27 December 2011
The remittance is not taxable in India as this would have been from their income earned in US and would have been tax paid there and taxation in India would lead to Double Taxation.

This is covered under double taxation avoidance agreement (DTAA) with US.

If any income is earned on such money like bank interest if you place these moneys in Bank FD's than that needs to be included in your taxable Income.

Sailesh Kumar Shah (Expert) 27 December 2011
Rightly answered by Vishal Sir.

Deepak Nair (Expert) 27 December 2011
Agree with Mr. A V Vishal

malipeddi jaggarao (Expert) 27 December 2011
1. Not taxable.
2. What do you mean by stating holding for their benefit? I presume that the money will be with you, in your name, but you would like use it for them at a future date. Whatever you say, the income earned on it is taxable income which is to added to your taxable income and if your taxable income crosses the limit after such inclusion, you are required to pay the tax. Otherwise not.

Querist : Anonymous (Querist) 27 December 2011
Thank You Very much respected experts

Devajyoti Barman (Expert) 27 December 2011
Yes rightly advised and I agree too.

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