Tax On International Money Transfer?

[hshringi]

So I am planning to get a self-attested gift deed since my dad has agreed to fund my expenses in Canada.

Now my concern is that he has a NRI (non residential Indian) account while I, being a domestic citizen of India, no longer qualify for the NRI status. So in this case, will the money he transfers from his NRI account to my domestic Indian bank account be taxed?

And if yes, is there a way for me to avoid paying this tax? - I mean its pretty ridiculous paying tax on money that belongs to the same family you know...

 

[bestofluck]

Inquire about NRI and NRO account. In such account you can deposit from other country and withdraw from India. you still need to Inquire about the details from any Bank like ICICI.

 

[hshringi]

Are there any taxes for any money transfer between two local accounts? I would think if there isn't then there shouldn't be when involving am NRI account either

I'll ofcourse check with ICICI for confirmation as well but I wanted the opinion of anyone that has any previous experience of this here as well.

 

[Stanlee]

Are there any taxes for any money transfer between two local accounts? I would think if there isn't then there shouldn't be when involving am NRI account either

I'll ofcourse check with ICICI for confirmation as well but I wanted the opinion of anyone that has any previous experience of this here as well.

If the funds are remitted in a currency other than the beneficiary's account currency, then the recipient will have to pay currency conversion charges, and applicable service tax (if any). As far as I know, gift in the form of money transfer to a blood relative is non-taxable in India.

 

[hshringi]

Yeah so I've checked with my dad and the money will indeed be transferred in INR.

Does anyone know if any taxes need to be paid if this was a transaction between two local accounts in India instead - ofcourse between a father and son

 

[bestofluck]

Yeah so I've checked with my dad and the money will indeed be transferred in INR.

Does anyone know if any taxes need to be paid if this was a transaction between two local accounts in India instead - ofcourse between a father and son

if your dad send you money in NRI or NRO account ( make a joint account with your dad), you can just show that account with letter from your dad saying the funds are reserved for your immigration. Tax does not come in picture.

 

[hshringi]

I don't qualify for NRI status anymore hence why a joint account isn't possible