| Question And Answer | |
|---|---|
| Subject: | NRI transferring money to wife in India |
| Category: | Income-Tax |
| Querist: | Neel |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | amount transferred to wife, non-resident taxation, NRI |
| Date: | June 22, 2023 |
Dear Sir, I am an NRI and my wife is an Indian resident. I would like to transfer money from my foreign bank account abroad to my wife’s Indian bank account to purchase property in her name and for other expenses in India. In this scenario, is it just a simple transfer and nothing else needs to be done, or for my wife’s Indian IT returns do I need to create any document like a gift deed for the money transfer? Also, does she need to declare this money transfer in her income tax returns? If yes, then in which section of her ITR-2 form does she need to declare this money transfer?
Thanks in advance for your response!
It is advisable to have a gift deed in place. The amount received by your wife should be shown in her income computation as a gift exempt from tax as it is received from her relative.