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I'm an Indian citizen. I want to transfer $20,000 to my son-in-law, who is a Canadian citizen living in US. My daughter is an Indian passport holder currently living in US on a H4 visa. I want to transfer the money as a gift. Can you please help me with the following questions:

  1. Can I gift this whole amount to my Daughter/Son-in-law or what is the maximum limit of Gift amount?

  2. What will be the tax liability on me and on my Son-in-law in case of Gift?

  3. Whether I have to show it in my Income Tax Return?

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Assuming your son-in-law is resident Alien for tax purposes in US. You are Resident Indian for tax purposes in India.

Can I gift this whole amount to my Daughter/Son-in-law or what is the maximum limit of Gift amount?

There is no limit either in India for you or to your son-in-law in the US.

What will be the tax liability on me and on my Son-in-law in case of Gift?

There is no tax as from Indian tax point of view you can gift unlimited funds to close relative. Transfer of gifts under USD 50,000 per do not require any paperwork. if the transfer is about USD 50,000, the under the liberalized remittance scheme upto 250,000 per year can be transferred. A CA Certificate with form 15CA and CB are required.

Whether I have to show it in my Income Tax Return?

As you are giving gift, this need not be shown in your tax returns.

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