Hi All, One of my friend need to return 3000 USD, which I sent to India, over 3 years when ever she was in need. I sent through Xoom. Now she got some money want to return my money. How do get to USA. I do not have a bank account in India. Do I need to pay tax?
Your local banker must be able to guide you better and more accurately. The person in India who wish to return the amount in US$ must approach his or her bank for arranging to transfer funds from his account. The fees for effecting such transfer vary from bank to bank.
thanks, my concern is do I need to show it in my tax returns filing? do I need to pay tax for 3000$. I don't want to pay any amount to the US gov for this lended money now getting back.
my concern is do I need to show it in my tax returns filing? do I need to pay tax for 3000$. I don't want to pay any amount to the US gov for this lended money now getting back.
In the US the giver of the gift is the one who needs to pay the gift tax, and that too only if the amount is over $16,000 annually. As a recipient you don’t need to declare or pay anything on your own taxes.
Transferring money to US account comes with some fees as well. It also depends on the type of Indian account, amount etc..So check with bank. Another way is to transfer that money to any Indian account you have.
META AI Responds as copied below: QUOTE(.) "Your USA friend has concerns about reporting and taxing a $3000 loan repayment from an Indian borrower. Here's guidance: *General Principles:* 1. The IRS considers loans as non-taxable events. 2. Repayment of a loan is not considered income.(.) UNQUOTE(.)
