{"id":5332,"date":"2025-08-15T02:49:43","date_gmt":"2025-08-15T02:49:43","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/08\/15\/when-my-daughter-sends-me-money-from-abroad-will-i-have-to-pay-tax-in-india-business-news\/"},"modified":"2025-08-15T02:49:43","modified_gmt":"2025-08-15T02:49:43","slug":"when-my-daughter-sends-me-money-from-abroad-will-i-have-to-pay-tax-in-india-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/15\/when-my-daughter-sends-me-money-from-abroad-will-i-have-to-pay-tax-in-india-business-news\/","title":{"rendered":"When My Daughter Sends Me Money From Abroad \u2014 Will I Have To Pay Tax In India? | Business News"},"content":{"rendered":"


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An expert’s response to a senior citizen’s query on whether their daughter’s quarterly remits from the US will be taxed in India raises awareness about the scenario.<\/h2>\n
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Is money sent by foreign relatives taxed in India? (Photo Source: Freepik)<\/p>\n<\/figure>\n

Many Indian citizens have a family member living and working abroad. They send them the regular money earned in foreign currency. Here\u2019s decoding whether this income is taxed by the government of India under the Income Tax Act and has to be mentioned in the recipient\u2019s ITR return?<\/p>\n

Moneycontrol\u2019s Ask Wallet-wise initiative revealed the answer to the pertinent question. A financial expert\u2019s response to a senior citizen, who has a daughter working in the United States of America and remits money at regular intervals to the retired individual and his homemaker wife, provided a timely understanding of such income and how it is treated by the income tax authorities.<\/p>\n

In their question, this Indian man asked, \u201cMy wife and I are senior citizens. I retired in 2013 and my wife is a homemaker. Our daughter, who is working in the US, remits around Rs 1,25,000 every three months to my wife\u2019s account in India. I would like to know if these remittances are taxable and whether they should be declared in her tax returns. My wife\u2019s annual income is around Rs 1,00,000.”<\/p>\n

In their response, the Moneycontrol expert highlighted the abolition of donor-based gift tax, stating that such remits are treated as gifts and \u201care now taxed in the hands of the recipient.”<\/p>\n

\u201cIf the aggregate value of all gifts received in a financial year exceeds Rs 50,000, the full amount becomes taxable under \u2018Income from Other Sources\u2019 at the applicable slab rate,” the expert added. \u201cThe Rs 50,000 threshold applies to the total value of all gifts\u2014whether in cash or kind\u2014received during the year.”<\/p>\n

However, gifts from specified relatives are fully tax-exempt under the Income Tax Act. The exempted relatives include the children of Indian citizens under Section 56(2)(x). Consequently, the Rs 1,25,000 remitted by the daughter every three months into her mother\u2019s bank account is not officially marked as income and is fully exempt from tax.<\/p>\n

Since the amount is not taxable, the senior citizen\u2019s wife doesn\u2019t have to declare it in her Income Tax Return. The daughter living in the US also need not disclose the same amount in her ITR if she happens to file it in India. \u201cUnder Section 139, an individual must file an ITR if their income before deductions and exemptions exceeds the basic exemption limit,” the expert stressed. \u201cIn the old tax regime, the limit was Rs 2.5 lakh for those below 60, Rs 3 lakh for senior citizens (60\u201380 years), and Rs 5 lakh for super senior citizens (above 80).<\/p>\n

\u201cUnder the new regime, the basic exemption limit is Rs 3 lakh for all individuals. Since the gift is not treated as income and your wife\u2019s taxable income is below the threshold, she is not required to file an ITR.”<\/p>\n

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