Query By - Pankaj | Dubai | 12/12/2012
Gift received from a close relative (your father qualifies as a close relative of the son) does not attract any tax as per Indian tax laws. Hence, your father can deposit the money directly into your NRO bank account or remit it to your US bank account. AP (DIR 2011-12) Circular 90 dt 6.3.12 allows under Liberalised Remittance Scheme (LRS) Resident individuals to remit up to the limit of US$ 2,00,000 per FY (Apr-Mar) for any permitted capital and/or current account transactions or a combination of both. This includes gift.
We confirm that there will be no tax on such a gift in India. Legally we can only comment on Indian tax laws. For taxability in the US, you are requested to get the information from a US based tax attorney licensed to practice US tax laws.