I have some money sitting in my NRE account. I would like to transfer some money from my NRE account to my mom’s bank account. My NRE amount is after tax money. Currently, my mom is also a stakeholder in my NRE account and she takes money for her monthly expenses. Please let me know if my mom needs to pay tax in India if I transfer my money from NRE account to her bank account.
If you mom is not NRI she cant be joint holder on account. Any money moved to saving account in India from NRE is ok and not be counted as income to a/c holder.
Joint holder != nominee. Nominee can write checks/withdraw on your behalf.
Does she have to pay tax on the interest she receives from her savings account as I am planning to send 20 lakhs and it’s going to be in her account forever as emergency fund.
her account would be resident saving account and she would have to pay taxes on it. Note that there is no clubbing provision for taxation with parents n child income like the one that happens for income on gifts between spouses.
Indian govt is not stupid. You are not talking senses here
Money sent as a gift to mother/wife/siblings is not taxable. You.r mother doesn't have to pay tax for that. But she has to pay tax on the interest she receives on the bank account. That would be based on normal tax slabs. If the interest is less than 2.5 lakhs per year, no tax is necessary. Having said that, it is a good practice to declare the interest as income and do tax filing. The tax declarations could be useful for other purposes.
Have you ever asked your mother if she wants the money or wants you back in India?
Lol. That was mean!
Yes
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You don’t get double taxed. It’s as simple as that. The money you send to your mom’s bank account is not counted as income.
So I can transfer to my mom’s account? No tax filing required for my mom if I transfer 10 lakhs to her account.
transfer from parent to children and vice versa - both are tax free in India.