Gifting money to NRI son: tax rules, limits

My son is a non-resident Indian (NRI) and wants to invest in foreign exchange-traded funds (ETFs).

- Harshal Bhuta

He doesn't have enough funds in his non-resident ordinary (NRO) account, so I'm planning to gift him the required amount by transferring it to that account.

I'd like to know if this gift will have any tax implications for either of us.

-Name withheld on request

Under Indian tax laws, any gift made to a 'relative' is fully exempt from income tax, regardless of the amount.

Since your son qualifies as a relative, transferring funds to his NRO account as a gift will not trigger any tax liabilityneither for you nor for him.