Is the amount taxable if my grandfather sells agricultural land
As your is a very specific case, please get an advice of CA. It should not cost you much and make it easier. The sale of agriculture land is taxable in certain conditions and exempt from tax in other cases. Sale of agricultural land is subject to capital gains tax. But there are certain exemptions under Section 54B, subject to conditions, which are as follows:    If deemed taxable, you can avail indexation, ie the price at which you grandfather got [the date when he inherited it as per indexation] and pay 10% on the difference. If the price is not known, you can take the govt prescribed rate.   As there is a large deposit in your fathers account, there can be tax queries and need to be answered. Technically there is no tax liable even if your grandfather gifts the money to your father. More details at http://www.telegraphindia.com/1130401/jsp/business/story_16733007.jsp and http://www.incometaxindia.gov.in/publications/4_compute_your_capital_gains/chapter2.asp
"A loan is not a taxable income. Neither is a gift. Loans are repaid with interest. The interest is taxable income to the lender, and may or may not be deductible to the borrower, depending on how the loan proceeds were used. Gifts are taxable to the donor (the person giving the gift) under the gift tax, they're not a taxable income to the recipient. Some gifts are exempt or excluded from gift tax (there's the annual exemption limit, lifetime exclusion which is correlated to the estate tax, various specific purpose gifts or transfers between spouses are exempt in general).  If you trade for something of equal value, is that considered income? Yes. Sale proceeds are taxable income, however your basis in the item sold is deductible from it. If you borrow a small amount of money for a short time, is that considered income? See above. Loan proceeds are not income. does the friend have to pay taxes when they get back their $10? No, repayment of the loan is not taxable income. Interest on it is. Do you have to pay taxes if you are paid back in a different format than originally paid? Form of payment doesn't matter. Barter trade doesn't affect the tax liability. The friend sold you lunches and you paid for them. The friend can deduct the cost of the lunches from the proceeds. What's left - is taxable income. Everything is translated to the functional currency at the fair market value at the time of the trade. you are required to pay taxes on the gross amount Very rarely taxes apply to gross income. Definitely not the US Federal Income taxes for individuals. An example of an exception would be the California LLC taxes. The State of California taxes LLCs under its jurisdiction on gross proceeds, regardless of the actual net income. This is very uncommon. However, the IRC (the US Federal Tax Code) is basically ""everything is taxable except what's not"", and the cost of generating income is one of the ""what's not"". That is why you can deduct the basis of the asset from your gross proceeds when you sell stuff and only pay taxes on the net difference." "Yes, it will be taxable in the US. You will report your worldwide income, and will be able to take credit for any Indian tax paid. However, the portions that are tax-free in India will be fully taxable for you in the US. Keep in mind, in addition to the taxes, the FBAR requirements and the FATCA forms you may need to be filing as well. Failure to file (regardless of if any tax is actually owed) will trigger a $10K penalty. I suggest you have a US-licensed EA/CPA (tax adviser) to help you with your US tax return. Keep in mind that a ""regular"" American tax preparer knows very little of the specific requirements for foreigners and may land you in trouble. Similarly, the ""off-the-shelf"" tax software or tax preparation outlets (like H&R Block) are ill-suited for foreigners in the US. It would be best to talk to a EA/CPA who is also familiar with Indian financial terms and Indo-US tax treaty." There can be Federal estate tax as well as State estate tax due on an estate, but it is not of direct concern to you. Estate taxes are paid by the estate of the decedent, not by the beneficiaries, and so you do  not owe any estate tax. As a matter of fact, most estates in the US do not pay Federal estate tax at all because only the amount that exceeds the Federal exemption ($5.5M) is taxable, and most estates are smaller. State estate taxes might be a different matter because  while many states exempt exactly what the Federal Government does, others  exempt different (usually smaller) amounts. But in any case, estate taxes are not of concern to you except insofar as what you inherit is reduced because the estate had to pay estate tax before distributing the inheritances. As JoeTaxpayer's answer says more succinctly, what you inherit is net of estate tax, if any. What you receive as an inheritance is not taxable income to you either. If you receive stock shares or other property, your basis is the value of the property when you inherit it. Thus, if you sell at a later time, you will have to pay taxes only on the increase in the value of the property from the time you inherit it. The increase in value from the time the decedent acquired the property till the date of death is not taxable income to you.  Exceptions to all these favorable rules to you is the treatment of Traditional IRAs, 401ks, pension plans etc that you inherit that contain money on which the decedent never paid income tax. Distributions from such inherited accounts are (mostly) taxable income to you; any part of post-tax money such as nondeductible contributions to Traditional IRAs that is included in the distribution is  tax-free. Annuities present another source of complications. For annuities within IRAs, even the IRS throws up its hands at explaining things to mere mortals who are foolhardy enough to delve into Pub 950, saying in effect, talk to your tax advisor. For other annuities, questions arise such as is this a tax-deferred annuity and whether it was purchased with pre-tax money or with post-tax money, etc.  One thing that you should check out is whether it is beneficial to take a lump sum  distribution or just collect the money as it is distributed in monthly, quarterly, semi-annual, or annual payments. Annuities  in particular have heavy surrender charges if they are terminated early and the money taken as a lump sum instead of over time as the insurance  company issuing the annuity had planned on happening.  So, taking a lump sum would mean more income tax immediately due not just on the lump sum but because the increase in AGI might reduce deductions for medical expenses as well as reduce the overall amount of itemized deductions that can be claimed, increase taxability of social security  benefits, etc. You say that you have these angles sussed out, and so I will merely re-iterate Beware the surrender charges. "The above answers are great. I would only add to the ""rainy day"" part, that even though the cash provides a good cushion, ""a stormy day"" could mean even losing those emergency savings to the unignorable randomness that governs the world economy. Though unlikely, what happened to the russian ruble and the latest decision of the swiss cental bank are just two recent reminders that uncertainty must be treated as a constant. I would therefore advise you to invest some of the money in land capable of agriculture. How expensive is land over there in the UK?" Simply transferring money you own from overseas to Canada will not mean you need to pay tax on it. However if you sell property at a profit - I.e. sell it for more than you paid for it - you may have to pay tax on any gains. This is true whether or not you transfer the money to Canada. Calculating the amount is quite complicated. You might consider getting a tax expert. What you are looking for is a 1031 exchange. https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031 Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free. You may also sell your house for bitcoin and record the sales price on the deed with an equal or lesser amount that you bought it for. Now i want to get this money in my new UK bank account, does this mean that gov will take taxes from this money as well. Yes that is income and you have to pay tax on that. But it might be a bit complicated than that, so I would ask you to call up HMRC or visit an accountant or maybe ask the finance people of your employer. Also one of my family members send us money every few months and will send to this bank from now on, does taxes also apply on this? See the HMRC page about capital gains tax on gifts: You won't have to pay Capital Gains Tax when you give a gift to your   husband, wife or civil partner - as long as both of the following   apply: It's useful to keep a note of what the asset cost you. Your spouse or   civil partner may need this to work out their Capital Gains Tax when   they dispose of the asset. Example: Mr B lives with his wife and gives her an antique table that   he bought for £12,000 in 2003. Mrs B spends £500 restoring the table,   eventually selling it for £20,000.  Her total costs are £12,500 (£500 plus Mr B's original cost £12,000). Mrs B's   gain is £7,500 (£20,000 less £12,500). When you make a gift to a family member or other person you're   connected with, you'll need to work out the gain or loss. This doesn't   apply to gifts you make to your spouse or civil partner. This also applies if you dispose of an asset to them in any other way   - for example, you sell it to them for a low price. A 'connected person' in this context is someone such as your brother,   sister, child, parent, grandparent, mother-in-law or business partner.   Follow the link below for more information about connected people and   Capital Gains Tax. You must get a valuation of the asset at the time you made the gift.   Use this value in place of any amount you received for the asset to   work out your gain or loss. If you gave the asset away, then of course   the amount you received for it will be nothing. If you make a loss you can only deduct the loss from gains you make on   gifts or other disposals to the same person. From an India Tax perspective, someone may add the US aspect; As you have given your Father-In-Law [FIL] some money, and do not have loan documents, the amount your FIL has repaid will be treated as GIFT to you. Gift Tax by Father-In-Law to Son-in-Law is 100% tax free and there is no limit of amount. The funds can be got into NRO account and not in NRE account. There is limit of USD 125,000 that can be reptriated outside India. Refer the RBI Q&A 56