Whether Sending Money from Abroad to Normal Savings Account will be Taxable?

The tax obligation in such cases depends on residential status being a normal citizen or an NRI. If the person is a normal citizen of India, then the income earned abroad would be taxable at applicable rate. If the person is an NRI and they send money to a normal Indian savings account, then the tax depends on the receiver.

For example, if a person send money to their parents’ account, then it will be considered as a gift and no tax is applicable. On the other hand, if a person send money to someone else’s normal savings account, then it would be considered as income for that person and it would be taxed at an applicable rate.

2 types of accounts can be maintained. One Non Resident External account NRE. The other one is Non Resident Ordinary account NRO. Interest earned on NRE savings bank accounts are not taxable. Interest earned on NRO accounts are taxable.

How much tax is relevant to the receiver, on cash gotten from abroad to India?

No expense to be paid if the sender is your nearby relative.

According to RBI controls, the settlement cash got from people abroad, who are your nearby relatives, is treated as a tax-exempt blessing.

Close relatives are characterized as ;

  • Life partner of the person
  • Sibling or sister of the person
  • Sibling or sister of the life partner of the person
  • Sibling or sister of both of the guardians of the person
  • Any lineal ascendant or relative of the person
  • Any lineal ascendant or relative of mate of the person

Be that as it may, on the off chance that you are getting cash from abroad and the sender isn’t identified with you, at that point any sum over Rs. 50,000 (about US$ 700) will be subject to be exhausted as your salary. You’d need to make good on pay government expense on the overabundance sum.

For ex : If your companion from the US sends you US$ 10,000 as a blessing (around Rs. 7,00,000 at the present US Dollar rate in India). You’d need to include the overabundance Rs. 6,50,000 to your salary and make good on government obligation on it.

In the event that the blessing sum surpasses US$ 14,000, your companion in the US would need to make good on the blessing government obligation there and you would need to make good on the salary regulatory expense on the abundance sum above Rs. 50,000 in India.

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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.