My son is on the last leg of a foreign posting and has been wondering how much he could remit to India with the least of tax implications. What do you suggest?
Bharat Bala, Chennai
Although there is no cap on remittance of money to India, if he remits the sum to you, it would not attract any tax because it is a transfer to existing family members. However, if he remits the same to someone who is not a relative, it would attract a gift tax for the recipient if the amount exceeds Rs 50,000.
As you mention that he is posted abroad, assuming he is earning abroad, which means the money that he plans to remit was received outside India before remittance – it would not attract any tax. However, if the remittance earned by him is received directly in India by him, it could be subject to tax depending on the nature of transaction.
