I am a US permanent resident and I loaned some money to my father in law in India early last year. I transferred US dollars from my US bank account to my NRI (Non resident Indian) account (Indian Ruppess) in India and then transferred the money out to my father in law's account in India. The source for this money is my savings from my salary and I have already paid US taxes on it. Now he is ready to pay the money back and I was wondering how I could bring it back to US. Since i have already paid taxes on it, will I be asked to pay taxes again in US or in India? How can I show that this is the money I loaned to my father in law?
All your help is really appreciated.