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    g_panjwani's Avatar
    g_panjwani Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Dec 12, 2006, 06:10 AM
    Filing tax
    Hi everyone,
    I have a query about taxes and would appreciate if someone can help me out
    I am an NRI and would like to know how much money can I remit to India as a gift during financial year(1st April 2006 to 31st March 2007).I heard that it cannot be more then 50000 in one financial yr... after that the amt is taxable.If that's the case how much tax will I have to pay on remaining 50000 if I transfer 1 lac .
    Thanks in advance

    Gaurav
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Dec 12, 2006, 11:12 AM
    Gaurav:

    I assume NRI means Non-Resident Alien or Non-Resident Indian.

    I am not 100% sure on this, but I believe that since you are a non-resident alien, the gift taxes that you are concerned about do not apply to you. I will need to do some research and get back to you.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #3

    Dec 12, 2006, 12:42 PM
    If the property is located outside the U.S. then no U.S. gift taxes should apply. If the property is real or tangible personal property located in the U.S. then U.S. gift taxes will apply to the extent the gift exceeds $12,000 in a year. Sec. 2511(a), 2501(a)(2). No unified credit is allowed to nonresident aliens. Sec. 2505(a). I am not sure which year you would use to measure the amount of the gifts - calendar year or Indian fiscal year.

    If you are making gifts jointly with your spouse, or if the gifts are to more than one person, the annual exclusion may be higher than $12,000.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Dec 12, 2006, 01:50 PM
    IntlTax beat me to the punch! Everything he says is accurate. Unfortunately, non-resident aliens ARE subject to the gift tax laws.

    You CAN split the gifts, i.e. give separate gifts of $12K to separate receivers, or have you and your spouse each give a $12K gift in order to take advantage of the $12,000 exclusion.

    Also, while transfers of funds between spouses are normally allowed with no limit and no taxes, transfers to a non-resident alien spouse IS limited to $117K per year.
    bhupeshwarsingh's Avatar
    bhupeshwarsingh Posts: 1, Reputation: 1
    New Member
    		  
    #5

    Mar 29, 2008, 12:11 AM
    Gaurav
    Sahara Care House offers personalized Tax Filing facilitation services in India. NRIs may post request for this service for themselves or to ease out tax filing process for their loved ones in India. For details: Tax Filing Services
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #6

    Mar 29, 2008, 10:35 AM
    Quote Originally Posted by g_panjwani
    Hi everyone,
    I have a query about taxes and would appreciate if someone can help me out
    I am an NRI and would like to know how much money can I remit to India as a gift during financial year(1st April 2006 to 31st March 2007).I heard that it cannot be more then 50000 in one financial yr...after that the amt is taxable.If thats the case how much tax will I have to pay on remaining 50000 if I transfer 1 lac .
    Thanks in advance

    Gaurav
    You can give a gift of $12,000 to any number of persons in a year. But if you give a gift of $13,000 to anyone in a year, you must file gift tax return.
    Read Your U.S. Tax Return: The U.S. Gift Tax
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