1. My father wants to gift me 70 lakhs rupees. How can he do it? My Questions 1. Under the LRS scheme: He can repatriate up 175 Lakhs. But after 7 lakhs banks need to deduct 5% TCS and send me the rest. Is that true even for a close relative? How he can claim back the TCS? 2. He can gift me the money to my NRO account and I can remit the money after 15CA/CB. Does he have to deposit a TCS to give me money in the NRO account? If yes where & how? and then how can he claim. Does he need to inform the government via the banking channel? Is there any way he can record it in his LRS transaction as I read that one can give a gift to NRI in NRO account not exceeding the limit? Who governs the limit?
1. Yes you are correct. He can claim the TCS credit at the time of filing of ITR.
2. Responsibility to collect and deposit TCS is on the bank and not on your father. Limit is governed by FEMA.
For detailed discussion, we advise to take phone consultation.
Dear Sir,
Hope you are doing well !!
1.Yes, that's correct.
However he can claim the tax credit while filing ITR in India.
2.The Bank shall only collect TCS on amounts received for remittance out of India under LRS in excess of ₹ 7 Lacs in a financial year.
We may assist you in entire procedure.
It is advisable to take a phone consultation for detailed discussion.
Thanks for Answering: My Main question is Can he gift me the money to my NRO account and can I remit the money after 15CA/CB? Is there any restriction on remitting the gifted money? Please reply with What happens to TCS in this case?
- Yee he can gift the money to your NRO account by filing form 15CA/CB.
- No restriction.
- TCS will be collected from your father only and he will get refund at the time of filing of ITR. It will be reflected in his Form 26AS. No TCS liability on you on remittance from your NRO account to your overseas account. You will be required to file Form 15CA only. tcs will be around 3.15 lacs in the hands of your father. Assuming your father is resident in India.
I can assist you in filing of firm 15CA AND 15CB.
Yes he can gift you the money in your nro account and you can remit the money after filing form 15CA / CB. Alternatively, father can also directly remit the money to your foreign account.
TCS will be applicable for remitting money more than 7 lacs. Bank will deduct the TCS and your father can claim it back while filing return of income.
