TAX ON GIFT OF MONEY BY FATHER TO DAUGHTER LIVING IN USA(NRI)

[NISHANT SHAH]

Dear All,

I want to know that whether tax is levied on recipient of gift from relative in India with effect from Finance Act, 2019.??

I heard that a resident indian can gift upto $2,50,000 to his/her relative(NRI) living in USA as per liberalized remittance scheme. Please suggest me how much money a father can gift( resident in india) to her NRI Daughter living in USA??

AI Summary

Gifting Money Abroad: Indian Income Tax Act 1961 Exempts Daughter's Gift; US Tax Consultation Recommended for Compliance. A participant in a discussion forum inquired about the tax implications of a father in India gifting money to his daughter residing in the USA. They referenced the Finance Act, 2019, and the liberalized remittance scheme, which allows up to $250,000 to be gifted. A respondent clarified that under the Indian Income Tax Act, 1961, such a gift is a capital receipt and not taxable for the daughter. However, they advised consulting US tax experts to determine the taxability under US law, as there might be changes requiring the recipient to declare the gift as income.