09/18/2026
🚨 NRI sending money to your parents in India? Read this before transferring large amounts!
If you regularly send lakhs of rupees to your parents’ Indian bank account, remember that bank transactions and certain reportable information can be visible to the Income Tax Department through systems such as AIS/SFT.
That does NOT mean your parents automatically owe income tax just because you sent them more than ₹10 lakh. But if a large amount is received, your parents should be able to clearly explain the source and nature of the money if questioned.
💡 What should you do?
Instead of casually transferring large amounts without understanding the banking/tax implications:
1️⃣ Use the appropriate NRI bank account based on your status and purpose.
2️⃣ Keep a clear record of the remittance — sender, amount, date and purpose.
3️⃣ Clearly document whether the money is for family support, a gift, investment, property, etc.
4️⃣ Make sure your parents can explain the source of funds if their bank transactions are questioned.
5️⃣ For large or unusual transactions, speak with a qualified CA/financial professional before transferring.
👉 The important thing isn’t simply staying below or above ₹10 lakh — it’s having a proper, documented and compliant money trail.
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