Is there any limit annually on the amount that can be sent to India? Do I need to declare it somewhere? It is getting deposited in my parents account in India. Last year I sent around $65k TC $180k
Afaik, when you transfer money to your parents it’s considered a gift and gift to parents from foreign accounts is non taxable and need not be reported by you. But, I’m not sure if your parents have to report it on their return albeit they don’t have to pay any taxes on it. I recommend talking to a tax expert India, especially since the amount is rather significant. If you are transferring this money to your own account in India, you will simply need to report foreign accounts on your 1040.
Gift also has a limit of 15k per parent annually I guess?
That’s if you revive a gift in the USA
Gift amount is $15k per year per person. You just need to file a form on your return if it exceeds. Regarding your parents, it’s tax free.
Not true . If it’s not an NRE account any amount over 7 lakhs will be taxed at 2%
That’s for outward remittances.
Damn that's some serious chunk after taxes
In India there is no tax on giving or receiving any amount to your parents/ brother/sister. In US you can send 15k per person without issues. Above that you need to report it in some tax form as it’s counted towards your estate tax which is currently exempted upto ~11M for the life time.
Need to do that even if on F-1 for majority of 2021?
For tax purposes visa does not matter. What matter is residency test.
Check these https://www.bossrevolution.com/en-us/blog/international-money-transfer-laws#:~:text=Financial%20institutions%20and%20money%20transfer,transactions%20valued%20below%20that%20threshold. https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements
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If u have nre account in India, you can deposit there directly. No one will ask any question. I think we need to declare using some form if you are sending more than 10k in a year or month I guess. I haven’t don’t that either 😬 continue to be a chapri by not declaring 😜