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I am US citizen and want to send around $45k to my parents in India. Is there any kind of tax I or my parents need to pay? If not then how can they show that it is gifted amount from their daughter in US? Can I transfer directly from my US saving account to their Axis bank in India?

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    "my daughter" => "how can they show that it is gifted amount from their daughter" unless you really did mean to have your daughter send her grandparents $45K. – Dilip Sarwate Mar 5 '15 at 22:01
  • I mean from "me" (as a daughter to her parents) – Richa Mar 6 '15 at 0:02
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    @Dheer's answer has addressed the Indian tax issue for your parents (and for you). His comment that you have already paid tax on the money in your savings account and so no US tax is due is correct with respect to income tax. However, as a US Citizen, you also need to take into account whether you owe any gift tax to the US. The standard rule is that gifts of more than $14K to an individual are subject to US gift tax (imposed on the donor not the recipient), but the rule (and level of exemption) might be different when the recipient is a nonresident noncitizen of the US. – Dilip Sarwate Mar 6 '15 at 12:16
  • In some countries you qualify for tax deductions (up to a specific amount) if you support your parents abroad. So I would look into this too. – WalyKu Dec 23 '16 at 9:05
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Can I transfer directly from my US saving account to their Axis bank in India?

Yes you can.

any kind of tax my parents need to pay?

No. From you parents point of view, its a Gift from their daughter and would come under the provisions of Gift Tax [and Not Income Tax]. Gifts from specified relatives [Daughter /sons /parent /siblings] is tax free. It would make sense to keep some paper work around this, for example a simple letter stating that this is a Gift, specify the amount, the date of transfer, the amount actually credited, details of the credit [Bank Statement]. If there is a scrutiny by income tax, it would ease things.

any kind of tax I need to pay?

In India NO. In US I am assuming your have already paid tax hence no tax.

  • "In India NO. In US I am assuming your have already paid tax hence no tax." You are also subject to gift tax when you gift someone money. – user102008 Mar 6 '15 at 20:28

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