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ShareI am 86 years old and have had a bypass surgery. My wife, 75, is diabetic. Our son is settled in the USA, for 39 years now. He is a heavily preoccupied professional and wants to send Rs 50 lakh for me and Rs 50 lakh for my partner so we can get monthly interest income for maintenance and have ready large funds to take care of our emergent hospitalisation needs.
My queries are:
a) Is there any limit on a son's remittance to his parents?
b) Does this remittance involve any tax implication for my son or for us, the parents?
c) We are both PAN holders and pay our taxes regularly on our present incomes, such as pension, interests and dividends, which is insufficient for our needs. Of course, whatever we earn as interest on the remitted amount by my son will be included in our income tax returns every year and tax will be paid on that income.
d) Is there any paper document required from my son or will his remittance to our account be enough to satisfy the income tax authorities and will not cause any difficulty?
--Har Krishan Lal Verma
As per Sec. 56, any sum of money received as a gift from a relative is tax-free without any limit. A son is relative of his parents as per the definition of the term 'relative' and hence if parents accept any money without any consideration from their son, the same would be tax-free in their hands.
Therefore, your son can send any amount of money to you or to your partner without any limit. There will be no tax incidence either on him or on you. The only paper documentation required is that the offer of the gift of funds should be made by your son and the same accepted by you in writing.
