Life insurance proceeds transfer from US to India

POSTED BY s ghumre ON April 3, 2013 8:01 pm COMMENTS (3)

 Hi Everyone, I have received the life and accident insurance proceeds after the death of my husband in the US.. The amount is in my US bank account and now I have moved to India.

I want to know what would be the right way to get the money transferred to India. I’m not sure if I should get it in one go or should leave a part of it in my US bank account for future. Please advise.

Since this is insurance money, I also want to know if it would be taxable if I get it to India? 

3 replies on this article “Life insurance proceeds transfer from US to India”

  1. Dear S ghumre, your income ‘ll be all from Fd interest & thus all income ‘ll fall under normal tax slabs.

    Thanks

    Ashal

  2. Dear S ghumre, first of all please accept my condolence for the loss you are bearing. Regarding the query, please feel free to transfer full amount to India. As the money received by you is insurance claim amount & you are merely transferring the same from USA to India, it’s tax free. Yes the income from the amount ‘ll become taxable.

    For example – the transfer amount is 10 million Rs. (1 Crore Rs.) & you invest all of it in bank FDs, the interest earned from such bank FDs ‘ll become taxable.

    Thanks

    Ashal

    1. s ghumre says:

      Thanks Ashal, this definitely helps!

      Further to your response, may I know which income tax category would this fall in (assuming I put everything in FD)? Would this be taxed as per regular tax slabs or would fall in some different bucket?

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