Help with taxation for NRI


I am an NRI, ased in USA. How much money can my parents gift me in an year, without a tax libaility for me in USA? Secondly, does this money need to be sent to an NRO account?

Hi @sanjana

Wherein any individual receives money in excess of 50,000 in any Financial Year without any consideration, such money will be taxed as Income from Other Sources in the hands of the recipient. However, this rule does not apply to money received from any relative, the definition of which includes your parents. Therefore, the amount credited by your father by way of a gift into your NRO account shall not be taxable.

Yes, the money needs to be sent to an NRO account. The gift from your parents cannot be credited to your NRE account. There is no such limit on gifts from relatives. Any gift given by them to you would be tax-free for both parties so far as India tax incidence is concerned.

Hope this helps :slightly_smiling_face:

Thank you for the detailed response. @Divya_Singhvi are you a CA or lawyer or suggest me one. Need someone based in Delhi at the earliest.

Hi @sanjana

I am a Chartered Accountant. We would be happy to help.
You can share your contact number and email id on Quicko | Contact Us so someone from our team can get in touch with you for details, process, pricing, and discounts?
Looking forward to simplifying taxes for you !:slightly_smiling_face:

am a NRI person, would like to file tax ,what’s the first step to do so?

Hi @kiranhbc, here are couple of articles which might help you with understanding taxes for NRIs

If you need help of an expert when filing ITR you can drop your contact details on Quicko | Contact Us and our team will get in touch with you :slight_smile:

Hello, I am OCI. I do have NRE savings accounts, deposit accounts and FCNR deposit accounts. I understand that all the interest earned from these accounts is exempt from the tax. My question is - do I need to file income tax (only for reporting purposes) in case I have interest from these NRE accounts as the ONLY income (no other income in India).

Hi @Chhote
Yes, it is advisable to file ITR. ITR 2 will be applicable in your case.

Thank you @Divya_Singhvi for your response. If I file ITR-2, does that mean

  1. I need to enter the interest income in Schedule OS, and
  2. then use Schedule EI to exempt all of that income?

Seems like this would be only reporting, as I have already included these interest while filing US taxes.

Hi @Chhote

You only need to mention the exempt Interest in Schedule EI.
Schedule OS covers the interest which is taxable.

Yes, it is disclosure of income earned in India.

Hope this helps :slightly_smiling_face:

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Thank you very much @Divya_Singhvi . Really appreciate your answers. Will refer you and to my friends and relatives for sure!

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