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

Gift taxation: familial gifts from a parent are not taxed under domestic law; verify remittance rules and foreign tax treatment.
Gifts from a father to his daughter are not treated as taxable income under domestic income tax law, characterised as a capital outgo for the donor and a capital receipt for the recipient. Remittances must comply with current RBI/Liberalised Remittance Scheme limits at the time of transfer. The foreign tax treatment is uncertain in the recipient's jurisdiction and a US tax consultant should be consulted to determine reporting and tax obligations.