Dear Friends,

I want to open an NRI account, I have a local account here in SPARKASSE and bit confused which bank to choose in India to open a NRI account...
Will be great to get suggestion from you..
Also I have a question rearding gifting money to My Family, is thr a upper limit to the amount which you can gift and does it mean in any way a tax liablity for them?

Thanks a lot

I will suggest SBI. But the problem is you do not pay tax on interest on your NRI account in India, which means you got to pay taxes in Germany. In the end it does not make a big difference.

About transferring money to your family member account:

The beneficiary will pay taxes on interest if he/she deposits money in the bank. Just in any normal case, after you have transferred money into an Indian account, the money belongs to beneficary and is taxed according to Indian tax law.

But yes, if your parents need money (kinda dependent on you) and they got no other source of income then you can get a statement signed from them, take this statement to FA and they will make this amount tax free in the end of year when you fill your tax-return. It is not complicated as it sounds

Hallo Tony,

Thanks for your reply, I have more questions :

1. Is it easier to open a bank account in SBI, sitting in here? I think the only brach which I know is in Frankfurt, I may go thr, if it is just a days works.

2. I want to transfer money to my father account. He is not a dependent on me and has his own income. I do understand that any income which he generate from the money which I trasfer will be taxable for example: interest income, but the question is the amount which I transfer, does this add also as a extra income for him or not? Also, does IT gives a upper limit of amount which I can gift or transfer to him? any reference to law will be very helpful.

thanks,