It is common for Non-Resident Indians (NRIs) settled abroad to send money to their parents residing in India. However, despite these foreign remittances being tax-exempt, parents sometimes receive inquiry notices from the Income Tax Department, Samayam Telugu reported.
According to the Income Tax Act, gifts exchanged between blood relatives, such as parents and children, are fully exempt from tax. Despite this exemption, receiving IT notices causes concern for many.
It is necessary to understand why IT notices are issued even when there is an exemption. Samayam Telugu explained what precautions should be taken to avoid these notices.
Generally, these notices may arise due to reasons such as the volume of transactions or inadequate records related to the money sent, Samayam Telugu stated.
To prevent these notices, it is crucial for NRIs to maintain clear records of all details and transactions related to the money they send to their parents.
Many families in Andhra Pradesh and Telangana have NRIs who send money to their parents. Therefore, understanding these IT notices and taking appropriate precautions is very important for them.
