Gift tax for purchasing house in the Netherlands

Assuming her residential status is NRI

- Without TCS@20%, you can transfer upto Rs.7 lacs annually. TCS@20% would be collected by bank on the remittance amount exceeding Rs.7 lacs. You can claim TCS credit at the time of filing of ITR

- For transfer to overseas bank account in Netherland, you have to visit bank and submit Form A2 & 15CA/15CB.Though Form 15CA & 15CB is not required even though bank my ask for them

To support your daughter, who holds an Indian passport and plans to purchase a house in the Netherlands, here’s what you need to know:

1. Maximum Transfer Without Tax in India:

   • You can remit up to ₹7 lakhs per financial year without incurring Tax Collected at Source (TCS).
   • For amounts exceeding ₹7 lakhs, TCS at 20% will be collected, which you can claim as a credit when filing your Income Tax Return (ITR).

2. Transfer Process Through the Bank:

   • Visit your bank and submit Form A2 to declare the purpose of the remittance.
   • While Form 15CA/15CB (related to tax compliance on foreign remittances) may not always be required, your bank might still ask for them, so it's best to be prepared.
   • The bank will process the transfer, typically using the SWIFT system, and the funds will be converted to Euros and sent to your daughter’s account in the Netherlands.

3. Considerations:

   • 
     RBI's LRS Limit: You can remit up to USD 250,000 per financial year under the Liberalised Remittance Scheme (LRS) without special approval.
   • 
     Dutch Tax Laws: Check if your daughter needs to report the gift in the Netherlands and if any local taxes apply.

Best regards,

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal