I am moving to Qatar and plan to send money to my family in India. Is there a limit and how will it be taxed? - George Kunnath, Cochin
Is money sent to parents from abroad taxable in India?
Transaction of money in excess of Rs.50, 000 will be taxed as “income from other sources”
Advertisement
As per the Foreign Exchange Management (Export and Import of Currency) Regulations, 2000, you are permitted to send foreign exchange to India without any limit in any form other than currency notes, bank notes and travellers cheques. From a tax perspective, where any individual receives money in excess of Rs.50, 000 in any financial year without any consideration will be taxed as “income from other sources” in the hands of the recipient. But this rule does not apply to money received by a relative (which includes spouse, brother, sister, brother or sister of the spouse, brother or sister of either of the parents, any lineal ascendant or descendant).