If I send money to India to my parents, is it taxable in India or the USA?
The money sent to the parents is treated as a “Gift” & is not taxable in India. However, if your parents invest that money, all the gains acquired from it would be taxable under Indian Income Tax. If your gift amount exceeds the US $14,000 annual limit, it is required to report it to IRS, and a gift tax is applicable on the entire amount.
Discuss with your tax advisor or consult a CPA or tax attorney for any tax related questions.
To learn more, visit our article: Tax Implications When Making an International Money Transfer
Note: The information presented here is generic and may not be accurate. Please consult your CPA, tax expert or tax attorney for specific tax advice and inquiries. Visit IRS Website for US tax information.
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Money Transfer FAQ's
