Transfering money from NRE to saving account is taxable or not
Meagrely transferring money within your own accounts doesn't result in any tax, however legally once you are an NRI you cannot operate a savings account at all as per Reserve Bank Guidelines found here One option is for you to transfer to a joint account held by a close relative of yours with you and this would be tax free in India. There are quite a few things here; Edit: If you are away for 2.5 Years, you are NRE. Your situation is slightly tricky in the sense that you are getting a salary in India for doing work outside. Please consult a professional CA who can advise you better. If you were not getting an Indian salary, then whatever you earn outside India is non-taxable and you can transfer it into your NRE account. As per regulations an NRI cannot hold a savings account. Point 3 is more applicable if you are on a short visit.
If you are still Indian Citizen for Tax purposes, then all your Global Income is taxable [There are certain exemption if you are in certain professions]. So even if you transfer or not transfer the funds to India, it is taxable in India. If you are getting a per day allowance, its exempt, this has to be looked more as expense reimbursed. If you are saving from per day allowance, well whatever you have save is to be declared as additional income and pay tax accordingly. If you are NRI for tax purposes, there is no limit on the amount of funds that you can send to India. Note that it would help to transfer funds into a separate NRI/NRO account to ensure traceability and ease of taxation. Easily transfer your earnings to India with HDFC Bank's NRE Savings Account. The Non Residential External Account allows you to repatriate the funds held in the account at any point of time. Open a NRE Savings Account now! Check out our website to know more! Legally if you are NRI for tax purposes, then you are required to convert all your Savings Account into NRO accounts.  For tax purposes it be advisable to open an NRE account. Depending on the Banks policy you can convert the account into NRO by submitted a scanned copy of passport along with the Visa page. You can transfer money from US to any Account in India [Savings/Current/NRO/NRE] using xoom or any other remittance services remit2india, money2india etc. "Transferring the money or keeping it in US does has no effect on taxes. Your residency status has. Assuming you are Resident Alien in US for tax purpose and have paid the taxes to IRS and you are ""Non-Resident"" Indian for tax purposes in India as you are more than 182 outside India. How would it effect my Tax in US and India If you are ""Non-Resident"" in India for tax purposes, there is no tax liability of this in India. I have transferred an amount of approx 15-20k$ to Indian Account (not NRE) By RBI regulation, if you are ""Non-Resident"" then you should get your savings account converted to ""NRO"". You may not may not choose to open an NRE account. To keep the paper work clear it helps that you open an NRE account in India. Any investment needed ? Where do i need to declare if any ? These are not relevant.  Note any income generated in India, i.e. interest in Savings account / FDs / Rent etc; taxes need to be paid in India and declared in US and taxes paid in US as well. There is some relief under DTAA. There are quite a few question on this site that will help you clarify what needs to be done." From what I understand, you have money earned in US and after paying taxes that are due in the US, you have transferred a portion of this to your brother. As you have earned this money outside India, there is not tax liability of this amount in India. Your giving it to your brother would at best be treated as GIFT [and not Income]. As you are giving it to your brother there is no limit on the amount of money that can be gifted. There is no tax liability for your brother. For more details read the  http://www.moneycontrol.com/news/tax/gift-tax-whatsa-gift_664238.html http://www.thehindubusinessline.in/bline/blnri/exp-tax.htm "If you are not taking any of the options in the Flexible Benefit Plan, then everything is taxable. Check about ""Retirals"", the practise differs from organization to organization. Some pay it out annually and some only pay on completion of certain duration on exit. So Deduct 47K from 7 lacs. Gross of around 653,000. Total tax for this around 53,000. After tax yearly around 600,000. Individual contribution to PF@ 12% of basic around 33,600. Net Yearly around 567,225. So net take home would be around 47,268. You can easily take items 3,6,7,8 around 62,400. Thus you will save tax of around 13,000. So take home will increase 1,080." Both of the other answers are correct and good answers, but I think neither directly answers your question. No, you do not need to pay additional taxes on the wedding gifts simply because of the fact that they are going into a Roth IRA.  Similarly, if you put them into a traditional IRA, that amount would be deductible (assuming you met the other criteria, including minimums and maximums of earned income, in both cases).  The act of putting money into a Roth IRA is not what makes it taxable; its original source is.  Roth simply does not reduce your current taxes any, whereas a traditional IRA would. The seeming exception to this is when rolling money from a tax-deductible source to a non-tax-deductible destination, such as transferring money from a Traditional IRA or 401(k) to a Roth IRA or 401(k).  Then, the taxable event is really the distribution from the Traditional IRA or 401(k), not the deposit into a Roth IRA or 401(k), though of course if you rolled a 401(k) over to a traditional IRA it would not be taxable. From an India gift-tax point of view, you can receive unlimited funds from close relatives. So if you are getting this from your Father's Brother or Mother's Brother; then it is not taxable. It is a good idea to document this if the amount is large. It serves as record for future. This can be a simple piece of paper or something that's type on Notarized document.