I am an Indian citizen and future UK postgraduate student (September 2023). To fund my studies and living expenses in the UK, I have applied to for a local government scholarship, the result of which will be available in Mid-August (too late for visa). In the event my scholarship application is not successful, my sibling, who is a US tax resident, has agreed to sponsor my studies.
Here's the gravy. To apply for a UK Student visa, I am going to need about 40,000 USD in my Indian savings account as evidence to show that I can support my studies and living expenses in the UK. I am going to ask my sibling to transfer this amount to me so that I can begin with my visa process. If my scholarship application is not successful, I will be using this amount to fund my studies. However, if my scholarship application is successful, I'd like to return the 40,000 USD back to my sibling in the US.
What I want to know is, is there any tax payable on the following money transfers:
- tax payable to the US authorities by my sibling on the money transferred from US to India.
- tax payable to the Indian authorities by me on the receipt of the same money transfer.
(and for returning money back to my sibling if my scholarship is successful):
- tax payable to the Indian authorities by me for transferring the money back to the USA.
- tax payable to the US authorities by my sibling on receipt the same money.
I know this is a very roundabout way of paying for my studies, but my circumstance calls for it.