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How much money can my father transfer from his India bank account to my U.S. bank account without both of us paying taxed on it ?

It will be used to buy a house in the U.S.I was thinking of getting myself added as a joint back account holder to his Indian account and then transfer the money to show that I transferred it from my own Indian account to U.S. account.

Will that help my father in avoiding taxation in India on the amount. Thanks!

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From an India tax point of view your father can gift you unlimited amount of money and the transfer would be under Gift Tax act. As per the act there is NO tax on this transaction. I does not matter if you get yourself added into the joint account or not.

From a US tax point of view, this transfer would come under gift tax, however in US the gift tax is applicable on the Donor [i.e. your father]. As your father is not a US Citizen the provisions are not applicable to him.

Edit
Under the liberalized remittance scheme, an individual can transfer upto USD 1 million every year. A CA certificate is required certifying that the taxes on the funds have been paid. Your Bank would be able to guide you on the exact process.

  • Thank you. How much money can I bring in from India ? – T C Sep 22 '15 at 22:24

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