The money one receives in an Indian bank account from abroad is called an inward remittance, and foreign inward remittances come under the governance of the FEMA or the Foreign Exchange Management Act. Read more about Taxation on foreign transactions here- https://www.salt.pe/blog/how-are-foreign-inward-remittance-taxed-in-india Watch this video to know more- https://www.youtube.com/watch?v=RveNhtBo7_8 Salt is a fintech startup based out of Bangalore, helping businesses thrive in the international market with effortless international payments and the compliances. Read more about Salt here: https://www.salt.pe

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Taxation
On Foreign Inward Remittances:

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What is an
Inward Remittance
& how is it regulated?
The money one receives in an Indian bank account from abroad
is called an inward remittance.
The inward remittances come under the governance of the FEMA
or the Foreign Exchange Management Act.

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Money Transfer
Service Schemes
Personal inward remittances to India are permitted under the MTSS.
These include remittances for family support and remittances to foreign
tourists visiting India from their families & friends overseas. A family is
only permitted to receive 30 remittances & $2,500 in one calendar year.

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Rate of TCS
on Foreign Remittance
The current Income Tax regulations have specified rates for TCS
collection on international remittance under the LRS.
If a buyer presents a PAN card, TCS will be deducted 5% otherwise,
the tax would be applied at 10%.
Tax is deducted at source at a rate of 0.5% on any funds transferred
to repay a loan obtained from a bank to pay for education. Again,
the TCS is applied at 5% in absence of a PAN card.

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What factors might
affect whether your
money transfer is taxed?
The funds' source : Depending on whether the fund comes from a pension,
sale of a residence, or an inheritance fund, the source significantly impacts
whether your money transfer is subject to tax.
The two nations' tax regulations : Different nations have different tax laws.
These include reporting to appropriate authorities to prove the legitimacy
of the source.
Money transferred: Does the amount surpass the country's tax threshold?

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When is the money sent
to someone in India from
a foreign country taxable?
While there is no cap on the amount of money you can send to
your family, the nation you’re sending to may have regulations and
restrictions on the highest amount you can send to India
without being subject to tax.

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How much money can be
sent as inward remittance
to India in a year?
The amount of money you can send to relatives listed in FEMA in
India without taxation has no upper limit.
If money is transferred to someone not on the list, they are regarded
as non-relatives, and if the amount received exceeds Rs 50,000
in a year, it will be taxed as income.

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What kind of tax
maybe charged
on Inward Remittances?
Individuals in India can receive an inward remittance in either a rupee
drawing arrangement (RDA) or a money transfer service scheme (MTSS).
Under the RDA, there is no limit on how much money can be sent overseas
for personal purposes.
Under MTSS, each inward remittance is restricted to $2500.

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Tax for sending money from
different countries to India
In the case of the USA, according to the IRS, money sent as gifts to
family members in India upto $15,000 every year would be tax-free.
However, most gifts over USD 15,000 will result in a tax event.
While in the UK, under the yearly exemption, you can send gifts worth
up to £3,000 from the country during the fiscal year. Additionally,the
montary value of gifts presented in civil ceremonies are also defined.

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Conclusion
In conclusion, the taxation depends on various factors like
The amount you receive(large sums are more likely to be classified as
income or gifts that may be taxable)
The reason you're receiving the money (is it a foreign inheritance,
a remittance payment from a family member abroad?)
Specific tax laws in your own country