Taxation on Money transfer from Abroad to relatives in India
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I am travelling to US and planning to transfer money from there to my father. Will that money be taxable in India as I will be paying tax in US already. There are NRE and NRO account facility with my Indian bank, what advantage will they provide. I am a law abiding citizen and would like to know how I can legally send money to India.
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You have not clarified about your residential status i.e.you are a resident Indian or NRI. If you are resident Indian,your global income is taxable in India.But,if you are NRI then only your income earned or accrued in India shall be taxable in India.
You can refer our detailed post on the same http://fintrakk.com/nri-tax-and-itr-which-income-of-nri-is-taxable-in-india-and-how/ If you are NRI and want to invest your overseas earnings back in India, NRE Account is a good option, the interest on NRE is tax free.
For details on NRE/NRO Account you can refer http://fintrakk.com/nre-account-vs-nro-account-facts-you-need-to-know/
If you want to send money to your family in India, there are other convenient ways like wire transfer through banks or branches of Western Union Money transfer or send money through Xoom,Remitly etc.But,please do check their charges/fees and customer support for better results.