Mother Indian citizen residing in India. Son UK citizen residing in UK.
What will be the best way to gift money to son over a time period of six to eight yrs. Can money be gifted to an Indian bank account of the sun? Would it make difference in gift tax? Are any other tax consequences?
Replies (6)
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It's a strange world when mother and son entrust their tax position to an internet chatroom, rather than to paid professional advisors.
Mother needs to take advice in India. I for one, and I am sure I am not alone, have no idea whether, or how, India taxes lifetime gifts.
If the mother is non UK domiciled and resident, you need to find the Indian version of this platform as all the tax issues should be with her on the gift. The son can then ask his questions when he has a tax issue or needs advice. I'm not sure if the Sun has opened any bank accounts yet. It's too busy keeping us warm(ish).
Mr/s Phd - in the UK, gifts given 7 years before death can be brought into inheritance tax. In some cases, that 7 years extends to 14.
I also have no expertise in Indian tax. I don't know whether gifts like this are potentially taxable. I don't know whether there are capital controls that would make it difficult to get the money out of the country. Or what the Indian tax implications are for a non-resident holding funds in India.
The parties need to get advice from accountants with expertise. Since the gift is a 'large amount', I'm sure they can afford it.