Dear diosys,
Thank you for giving such analytical replies. your service is greatly appreciated.
I have Question:
I am an NRI and my Mom has residential account in India and she has demat and online trading account also(3in 1) I am sending money to my NRE account and from there I am transfering to her residential bank account and then she trades from her account.
My mom is a retired person and she gets only pension as income. Now I have given her lot of money from my NRE account for her stock trading and investing. In future I am going to get the money from her when I return back to India.
Now how would be the tax charged for her? and how much tax I have to pay when I get it from her back to my residential or NRO account, the profit and money? Most of her trading money is from my NRE account. Naturally I will get from her back. Please advise me what is the best way to avoid taxes.
Thank you in advance
sincerly
sam
Thank you for giving such analytical replies. your service is greatly appreciated.
I have Question:
I am an NRI and my Mom has residential account in India and she has demat and online trading account also(3in 1) I am sending money to my NRE account and from there I am transfering to her residential bank account and then she trades from her account.
My mom is a retired person and she gets only pension as income. Now I have given her lot of money from my NRE account for her stock trading and investing. In future I am going to get the money from her when I return back to India.
Now how would be the tax charged for her? and how much tax I have to pay when I get it from her back to my residential or NRO account, the profit and money? Most of her trading money is from my NRE account. Naturally I will get from her back. Please advise me what is the best way to avoid taxes.
Thank you in advance
sincerly
sam
Dear Sam,
As per my understanding of the Income tax act you need not to worry for the tax implications once this money comes back to you....Why I say so is because the tax would be paid by your mother on the income she earned by dealing in stocks.....Once she transfers that money to you it would be a simple gift and no income tax would be payable on such transaction....