New Delhi, Aug. 23 -- Many non-resident Indians (NRIs) send money to their parents in India, but even genuine family remittances can attract scrutiny from the income tax department if the transaction is not properly documented.

A large transfer into a parent's bank account could prompt questions about the source and nature of the money.

This instance was highlighted by a case where a US-based NRI's Rs.11 lakh transfer to his parents led to an income tax notice, which he contested for six years before the Income Tax Appellate Tribunal (ITAT) quashed it in May this year.

While money received from an NRI child is not automatically taxable in the parent's hands, it is important to maintain documents that establish where the money came from...