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.
- McAfee JohnMcPeeYou 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.
- McAfee JohnMcPeeI 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.
If your mom has the control of your NRE account, why the need to transfer? Let her withdraw or write checks?
- Amazon 123rajHave you ever asked your mother if she wants the money or wants you back in India?
- 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.
- 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.
- Facebook HONa01Money 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.