New Delhi, May 26 -- Many Indians working abroad regularly send money home to support their parents, pay household expenses, or help with investments and medical costs. However, a common question that arises is whether such overseas remittances are taxable in India.

The tax treatment of such transfers largely depends on the relationship between the sender and recipient. A child is treated as a relative and money received from "specified relatives" is exempt from tax in the hands of the recipient, regardless of the amount, according to income tax rules.

The specified list of relatives include spouse, brother or sister (including spouse's siblings), parents, grandparents, children, and grandchildren, among others. However, if a relative f...