Gift Tax and getting gift from India

tara2201

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Join Date: Oct 2006

Posts: 7
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#1

Gift Tax and getting gift from India

06-03-2015, 07:53 PM

Hi,

I am on H1 visa in USA.
I plan to get some $$ from India as a gift by my sister who is Indian citizen.

My questions-

1. Can parent/in law/sibling give the gift without issues?
2. How much is the limit in terms of $ to get gift from India?
3. Do I have to pay taxes in US and does the donor have to pay any taxes in India or USA?
4. Can I use this money as gift as a downpay ment for buying new home?
5. What documentation does she have to prepare and what documets do I need to prepare?
6. Does she have to show any proof as to where the money came from in her account before it was transfered to my account as gift?
5. Are there any other restrictions, forms to be filed by me in US while filing taxes etc for the same.

Thank you for the help.

~Tara
Tags: gift tax, gifts
inadmissible

Senior Member

Join Date: May 2015

Posts: 2527
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#2

06-13-2015, 01:37 AM

Gifts from foreign person | Internal Revenue Service

http://www.irs.gov/Businesses/Gifts-from-Foreign-Person

If you are a U.S. person who received foreign gifts of money or other property, you may need to report these gifts on Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. Form 3520 is an information return, not a tax return, because foreign gifts are not subject to income tax. However, there are significant penalties for failure to file Form 3520 when it is required.
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