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No, under section 56(2) of the Income Tax Act, gifts from relatives, including sons or daughters, are fully exempted in the hands of parents, irrespective of the amount.
The 50,000 Rs limit applies to gifts from non-relatives. For parents and other close relatives, there is no monetary limit.
For individuals, relatives include parents, children, siblings, siblings of spouse, spouse, and lineal ascendants/descendants, etc., and gifts from such relatives are tax-free.
No Indian Income tax is levied on the NRI living in the US for sending monetary gifts to their relatives in India.
Yes. The gifted money is tax-free, but any interest, rent, FD income, or gains generated from that money in India are taxable in the hands of the parents as normal income.
By Varun Gupta |Last Updated: December 11, 2025
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