These are a set of queries raised by ET Wealth readers, which have been answered by our panel of experts.
I want to gift a large amount to my daughter living abroad for her future needs. What is the simplest way to send it?
Vikash Jain, Co-founder, Share Samadhan: The simplest way to gift a large sum to your daughter is through an outward remittance under the RBI’s Liberalised Remittance Scheme (LRS), which allows a resident Indian to remit up to USD 250,000 in a financial year, for gifts or maintenance of close relatives. Such gifts to a daughter are exempt from income tax in India under Section 56(2). Banks will collect TCS (tax collected at source)—nil up to Rs 10 lakh a year and 20% beyond that threshold— which is fully adjustable or refundable when you file your ITR. The transfer is done through your bank by selecting the purpose as ‘gift’, submitting your PAN, Form A2, your daughter’s bank details, proof of relationship, and a simple gift declaration. This route is transparent and secure, usually processed in about three working days, and banks handle all compliance, though for remittances close to the USD 250,000 limit, a quick check with the bank’s forex desk or a chartered accountant is advisable.
My son has taken foreign citizenship. I would like to gift him all my gold jewellery. How should I do this? Will he be allowed to take all abroad? What are the tax implications of this?
Shubham Agrawal, Senior Taxation Adviser, TaxFile.in: You can execute a gift deed in favour of your son, clearly listing the jewellery items along with detailed valuation specifications, purchase invoices, and, ideally, photographs of each item to create a comprehensive record.
It’s optional but would be useful to include descriptions such as weight, purity, and distinguishing features, as this strengthens documentation and helps in case questions arise in the future from tax or regulatory authorities. Gifts to blood relatives in India are tax-free, so this transfer will not attract any tax liability in India. However, your son should carry a customs declaration declaration when taking the jewellery abroad and retain all supporting documents, including the gift deed, invoices, and valuation details, for any queries by authorities. Additionally, it is important to check the applicable laws in his country of residence regarding declaration requirements, import duties, and taxation, as these can vary significantly and must be complied with beforehand to avoid complications.
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Source Name : Economic Times