How will funds repatriated to UK be taxed?

My son wants monetary assist to purchase a home within the UK, the place he has been dwelling since 2011 and has since made solely two brief visits—every of three weeks period—to the nation. As an Indian citizen, how a lot cash can I ship him for buying the home with none tax legal responsibility to him? 

—Name withheld on request

Under the India Income-tax, the earnings tax is levied on any sum of cash, movable property or immovable property obtained in extra of ₹50,000 by a person with out consideration (i.e., with no quid professional quo) or for insufficient consideration, besides presents obtained from a “relative” or on marriage or by the use of inheritance or different specified exclusions. Relatives embrace partner, siblings, in-laws, mother and father, any lineal ascendant or descendant of self or partner, and others. 

 Assuming that the switch of quantity is by the use of reward, reward obtained by son from his father is roofed by exclusion supplied and therefore, is not going to be taxable in India within the fingers of your son. However, the taxability of reward within the UK could must be analysed individually. You could search recommendation from a UK tax skilled.

I borrowed ₹10 lakh from  my cousin, who deposited the quantity in my checking account in India. What would be the expenses and my tax legal responsibility for transferring the quantity to Australia, the place I keep. Is there any restrict on the quantity that I can switch to Australia? 

—Name withheld on request 

Under the trade management legislation, you could remit to a financial institution exterior India as much as ₹1 million per monetary yr out of your Non Resident (Ordinary) (NRO) Account.   Assuming that this can be a bona ide private mortgage transaction between you and your cousin and the mortgage is repayable to your cousin inside an agreed time frame, there will probably be no income-tax legal responsibility in your fingers in India.

Sonu Iyer is tax companion and other people advisory companies chief, EY India.

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