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My brother is moving to the United States with an L1 visa. What would be the tax implications for me and for my brother in the following scenario

1- I send $3000 as outward remittance to his account in the US

2- He sends back $3000 in cryptocurrencies such as bitcoin

3- taking advantage of exchange rates suppose we make a profit of $100 in the transaction.

4- I transfer $3100 to my account and send back $3000 to his account again

Assuming, we do this for 4 cycles, ie. I send him $3000 a total of 4 times and he sends it back using bitcoin 4 times

how would the taxes be calculated? I read in a forum that a gift totalling $14000 from usa to india would not be taxed.

Also, if we bypass my account altogether and use his Indian savings account for the transactions what would the implications be?

Who should I consult for a detailed discussion on the matter?

Thanks,

Anurag

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Please consult a CA in India or CPA in US.

If the intent is gift, then there is no tax to your brother in US or to you in India on the transfer. The profit of 100 is taxable to you in India as capital gains.

Your brother can use his NRE account. In this case, he needs to pay a tax on 100 in US. There is no tax in India.

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