I am 62 years retired person in India and my daughter is study+working in Europe. How my daughter can send Euro to my account in INR with a smooth,hasslefree from the point of Tax implication in both side.

Ans: Hi Shailendra
Assuming that you are referring to FY 2022-23, as your daughter was outside India for more than 182 days, her income in Germany would not be taxable in India. You need to note that she should not get the income credited in India in the first instance. She could deposit the income in Germany first and then remit it to her NRO or NRE account in India.

She needs to get her savings account in India redesignated as NRO account

Ans: Dear Shailendra,

As your daughter was outside India for more than 182 days during the financial year 2022-23, she would be considered a Non-Resident Indian (NRI) for tax purposes. I'll outline the tax implications for her below.

Income earned in Germany: As an NRI, your daughter will not be taxed in India for the income she earned in Germany through her part-time job and paid internship. She will need to pay taxes on this income according to the tax laws in Germany.
Income from share investments, mutual funds, and dividends in India: As an NRI, your daughter will only be taxed on her income that is earned or accrued in India. This includes:
Short-term capital gains on equity shares and equity-oriented mutual funds: These will be taxed at a rate of 15%.
Long-term capital gains on equity shares and equity-oriented mutual funds: Gains exceeding ₹1 lakh will be taxed at a rate of 10%.
Short-term and long-term capital gains on non-equity investments (e.g., debt mutual funds) will be taxed as per the applicable slab rates for NRIs.
Dividends: Dividends received from Indian companies will be subject to tax deduction at source (TDS) at a rate of 20% (plus applicable cess and surcharge).
Regarding your query about changing her 3-in-1 savings bank account with ICICI Direct, it is advisable to inform the bank about her change in residential status and convert the account into an NRO (Non-Resident Ordinary) account. This will help in managing the tax compliance for her investments in India.

Please note that the Double Taxation Avoidance Agreement (DTAA) between India and Germany may provide relief from being taxed on the same income in both countries. Your daughter should consult a tax professional in Germany to understand the applicable provisions and claim any benefits available under the DTAA.

I hope this information helps.

Best regards

Ans: Dear Sir, Need to understand more from fema point of view basis RBI regulations. whether the amount in her NRI account is her taxed paid funds? since she is the US citizen, she would be taxable for the global income into USA, but need to see if she was in India for more than 182 days during the previous year or not? Also, the quantum of amount, you wish to transfer is also required to be verified .

The reply can be framed after all the above information is received.

Ans: Your mother can easily send it using banking channels. The facility is available on bank websites or the bank branch can be contacted for it. There are many other companies available which can facilitate it.

Ans: As per RBI regulations, an Indian person can only take USD 2,50,000 per financial year out of India. Further, a refundable tax to the extent of 20% (considering its not for your daughter's health and education) needs to be paid at the time of remittance which can be claimed in your income tax return as a refund.