Money

NRE bank to my mom’s account(India)

Facebook Hddhj
Dec 5

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.

comments

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  • McAfee JohnMcPee
    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.
    Dec 56
    • Facebook Hddhj
      OP
      So I can transfer to my mom’s account? No tax filing required for my mom if I transfer 10 lakhs to her account.
      Dec 5
    • Google qBNP32
      transfer from parent to children and vice versa - both are tax free in India.
      Dec 5
    • Twitter
      hdhhj

      Twitter

      PRE
      Adobe
      hdhhjmore
      Exactly. You only pay taxes once even if the tax was paid to US. You can safely transfer to Indian account.
      Dec 5
    • McAfee JohnMcPee
      I ain’t a tax professional, but as far as I know, if you are taxed here, you shouldn’t be taxed again in India.

      Imagine if A sends money to B and A has already been taxed. If B sends money to C and they both get taxed due to this logic, then every node in the chain gets taxed, which is absurd.

      This link also says that the money in the NRE account is non-taxable.

      https://www.compareremit.com/money-transfer-guide/sending-money-to-nre-account/

      If your mom has the control of your NRE account, why the need to transfer? Let her withdraw or write checks?
      Dec 5
    • TriNet AYwy24
      I do that all the time using western union .... no new account needed . Mark it as family maintenance
      Dec 5
    • 8x8 / Enggarbledtxt
      She will have to pay taxes on the interest she will earn on the money you transferred to her account
      Dec 6
  • Amazon 123raj
    Have you ever asked your mother if she wants the money or wants you back in India?
    Dec 61
  • GE
    Listener7

    GE

    BIO
    Life can be simple or complex!
    Listener7more
    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.
    Dec 51
    • Amazon BzdX48
      Joint holder != nominee. Nominee can write checks/withdraw on your behalf.
      Dec 6
  • Facebook Hddhj
    OP
    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.
    Dec 51
    • Google qBNP32
      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.
      Dec 5
  • Facebook HONa01
    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.
    Dec 60
  • GE
    Listener7

    GE

    BIO
    Life can be simple or complex!
    Listener7more
    Indian govt is not stupid. You are not talking senses here
    Dec 50
  • 8x8 / Enggarbledtxt
    Yes
    Dec 60

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