I transfer some amount of cash to my parents for their groceries every month. What are the tax implications for this amount? Do I get any tax exemptions for this sum?
Tax obligation for your parents: NIL
The transfer would come under the Gift Tax act. There is no limit on the amount for near relatives. So you can send unlimited amount to your parents and this would not be taxable. However if you parents invest this in FD, Interest on savings, etc ... this income would be taxable.
Nope there is no tax exemption for you on this amount.
Up to RS50,000 is exempt from gift taxes. In the US, if one provides more than half the expenses for a relative, they may be a dependent. I don't know the India rules.