Hi
No, there would be no tax liabilities on such transaction.
Tax liability on transfer of amount from daughters account to mothers account
My daughter is 19years old and currently in the UK studying in university. she has some amount in her savings bank account in IDBI bank which we would like to use to pay her tution fee. IDBI bank does not have facility for internet banking for online international remittances from India to UK and wants the physical presence of the account holder to fill in the relevant forms. So we want to transfer the money from her savings account online to her mothers account in SBI which in turn permits International remittances through internet banking. Thereafter the amount can be sent to my daughters college in UK as tution fees. If the amount is transferred from a child (19 years) to her mothers account, is any tax applicable kindly advise
Asked 4 years ago in Income Tax
- No it will not be taxable as there is no generation of income in the hands of mother. File Form 15CA if the residential status of your daughter is NRI. Form 15CA is for payment by resident to non-residents. It is filed online and submit hard copy of Form 15CA to your banker (SBI) along with foreign remittance advise. We can assist you in filing of Form 15CA.
For detailed discussion, please consult telephonically.
You can transfer that. There is no tax applicable on that
Dear Sir,
Hope you are doing well !!
There would be no tax liability on the same.
However, the person making the remittance to non – resident needs to furnish an undertaking in form 15CA.
This form is submitted online. In some cases, a Certificate from Chartered Accountant in form 15CB is required after uploading the form 15CA online.
We may assist you in entire procedure.
It is advisable to take a phone consultation for detailed discussion.
please advise whether it is compulsory to file any form when transferring money by a resident (mother) to her daughter studying in UK (like form 15CA)
Asked 4 years ago
Yes it is mandatory if the residential status of your daughter is NRI.
Yes many banks require 15CA for that
Form 15CA is not required in following cases:
- When the remitter makes remittance as per the specified list of payments in Rule 37BB of Income Tax Rules.
(Refer: Income Tax Rules) - https://www.incometaxindia.gov.in/Rules/Income-Tax%20Rules/[deleted].htm
- Not applicable to an individual who does not require RBI approval as per Section 5 of the Foreign Exchange Management Act, 1999.
Example: Mr. A remitted USD 1,25,000 to his son who went to Germany for higher educations. The amount remitted does not exceed the threshold limit of USD 2,50,000 therefore no RBI approval is required for such remittance and Mr. A is not required to file Form 15CA.
Form 15CB is not required in following cases:
- When the remittance is not taxable.
- If the income is taxable in the country of residence of the remittee.
- When the aggregate of remittances during the financial year does not exceed Rs. 5,00,000.
We may discuss the issues in detail over a phone consultation.
Hi
No there is no liability on such transfer.
Hi
- Form 15CA and 15CB will be NOT be required to be furnished by an individual for remittance, which does not require RBI approval
- List of payments of specified nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33 including payments for imports.
- Form No. 15CB will only be required for payments made to non-residents, which are taxable and if the payment exceeds Rs. 5 lakhs.
There is no tax liability. Every remittance outside India needs to be done after executing documents like 15ca / CB.
No tax is applicable.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.
Thank you.
Hi
You would have to submit form 15CA to the bank for the transaction.
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA