Gift deed is required..and you will need a lawyer who will draft it and get it registered. For every transaction seperate deed will be required.
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Deed of gift for NRI family
Hi all, My parents based in India are planning to send some monetary gifts to me, my wife and our kids. They will be sending this in 2-3 transactions per relative i.e. some amount for 2 or 3 months. Me and my family are based in Australia I want to know ; 1. What's the process of creating a deed of gift or will they just need a self affidavit/stat declaration ? 2. Who shall their hire or enquire this from - an accountant or a lawyer ? They are aged so they do need some hand holding. 3. Would they need to create a deed of gift/affidavit for every transaction or just one deed of gift/affidavit with overall amount that they are sending to us with all our names will be sufficient ? Thanks
Asked 3 years ago in Property Law
Religion: Hindu
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12 Answers
no gift deed is necessary
2) affidavit should suffice although it is not necessary
3) one affidavit is sufficient
A single self-affidavit/statutory declaration containing the overall amount being gifted to each recipient and their names should be sufficient.
Hello,
- If your parents residing in India plan to send you money in a span of 2 or 3 months it does not call for a Gift Deed to be registered.
- One Affidavit declaring their intention to transfer the funds as a gift would suffice to clarify that they are willingly and out of their love are doing so.
- It would be advisable for them to seek the help of a lawyer to draw up the Affidavit.
Please note that under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI), a resident Indian can transfer up to USD 250,000 (its equivalent in Australian dollars) per financial year to friends and family abroad.
You may find a lot of money transfer providers for remitting money from Australia to India.
However, there are limited options when you want to transfer money from India to Australia.
There are money transfer companies specialized in sending money from India to Australia that provides better exchange rates and lower transaction fees.
Requirements for Wire Transfers
- Beneficiary's Name & Address
- Beneficiary Bank Details (Swift code, Account number, Bank Routing number, Correspondent Account number)
- Sender's Name & Account number
- Purpose of Remittance with KYC
- Self-declaration stating the relationship between the sender and beneficiary
If you are a resident Indian, you need to fill up and submit Form A2 to the bank along with Government Issue ID proof or copies of your passport, Visa, pan card (if necessary) to make a transfer. Each bank has its own version of the A2 Form. You will have to get the correct version from your bank. After your bank verifies the documents, the wire transfer is initiated and the fund will be transferred to the beneficiary account in 2-5 business days.
Even if you don't execute the gift deed it will attract the tax in your income tax returns
You need to create a gift deed in the same and same but registration not mandatory
Thank you everyone. Just want to be clear, I dont hold Indian citizenship atm so we are not liable for any IT taxes. Will my parents have to pay any taxes other than TCS on this ?
Asked 3 years ago
they dont have to pay taxes on money gifted to you and your children
gifts from parents to an NRI citizen are not taxable in India.
Yes if they receive they will be liable for taxes
Hello,
You are right, you are not liable for any payment and your parents would not have any additional tax liabilities
In gifts the donor do not have to pay any taxes, they have to be sure of the source of income for the gifted amount.
Therefore the taxes will be in the hands of the beneficiary alone and not with the donor.
As per the Indian Income Tax Act, if the aggregate value of gifts received by an individual from a non-relative exceeds Rs. 50,000 in a financial year, then the entire amount of such gifts is taxable under the head 'Income from other sources'. However, if the gifts are received from relatives, then they are exempt from tax.
Since you are a non-resident of India, the money received by you as gifts from your parents in India would not be taxable in India. However, it would be advisable to consult a tax expert to confirm the tax implications of the gifts in your country of residence.
