1

I am NRI and I have NRE/NRO account.

  1. I want to transfer money to my parents in India. What would be the best way to transfer money (send money to NRE account or send money to my parent's account)?

  2. My parents would use that money for buying shares and property on my name, and occasionally sell those shares (Would the profit which will be earned by selling those shares taxable in USA or India)?

  3. If I send money to my parents' account, can they use that money for their business and what would be tax implications on the money they earn in the business through the money I sent to them?

Improve this question
1
  • Why not buy the shares for yourself in your own name instead of involving your parents? If the shares are in your name, then the situation is. very clear. But for Indians, "buy shares on my name" might very well mean "buy jointly owned shares or shares in the parents' name only with a promise that the shares will belong to you after the parents are gone; in which case the question is whose PAN Card number is on the account (and please don't say that it is the undivided family's PAN Card number).
    – Dilip Sarwate
    Jul 29, 2017 at 2:58

1 Answer 1

Reset to default
1

I want to transfer money to my parents in India. What would be the best way to transfer money (send money to NRE account or send money to my parent's account)?

Product or Service recommendation is offtopic. You can transfer money to your own NRE account or parents account. There are quite a few services.

My parents would use that money for buying shares and property on my name, and occasionally sell those shares (Would the profit which will be earned by selling those shares taxable in USA or India)?

If the intent is to repatriate the funds back to US; it is advised that you transfer the funds to your NRE account and give power of attorney to your parents. This will make it easy to repatriate funds.

From an Indian tax point of view; any gains will be taxable in India as long term gains when redeemed. Note there is a separate DEMAT - PINS account that need to be opened in your name.

From US tax point of view; ensure the all Indian Accounts / Assets are declared appropriately. Gains will be taxed in US as well. You can claim benefit under Dual Tax Avoidance Agreement. There are quite a few questions covering this subject. Search under DTAA tag

If I send money to my parents' account, can they use that money for their business and what would be tax implications on the money they earn in the business through the money I sent to them?

You can gift unlimited amount to your parents without any tax implication to them. Any interest / gains / profits from business will be taxable to your parents and they have to pay tax on gains. If the amounts are large, please document a gift deed so that paperwork is clear.

Improve this answer

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .