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Mihir Tanna |1120 Answers |Ask -Follow

Tax Expert - Answered on Sep 03, 2025

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by Sudipto on Sep 02, 2025Hindi

Dear sir, I have recently given a loan of $95,000 USD to my NRI daughter living in the USA, when she requested me for this help to buy a house. I expect to get this back from her in a year or two. While transferring this amount to her, the Forex transfer agency had advised me to show it as "Gift" to blood relation and has charged TCS @20% on INR value above Rs.10 L - as per RBI's regulations. While doing so, they stated that I shall be eligible to adjust it against any future tax liabilities of the current f.y. and the excess amount left unadjusted thereafter, if any, shall be claimed as 'Refund' during my ITR of the next Assessment Year. Now my question is - (1) What kind of documentations I need to maintain for this TCS refund? (2) After a year or two, when my daughter transfer this money back to my bank account, how do I correlate receiving this huge amount coming back into my account, and show that it is not my income from any foreign sources and instead a return of fund I had transferred as a loan to my blood relation, which is now being repaid back, without any financial gains (e.g. interest earned or so), albeit there might still be some profit or loss, depending upon the forex exchange rate prevailing at the time of this refund. Please advise.

Ans: 1) Gift deed, forms submitted to bank for remittance and bank statement will be sufficient for claiming refund

2) While taking back money, nature mentioned in forms submitted to bank will suffice to say that amount received back is not an income.

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