Money transferred to India - how to account for tax return in Germany

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March 6, 2019

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Money transferred to India – how to account for tax return in Germany

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How to account for tax return in Germany for the money transferred to India? A must know info

Most of the Indians working in Germany would have transferred some amount of money to their family in India. In such cases, did you know that this money could be accounted in the tax return process and you can get back the tax contribution for it?

If not, we will give a quick intro about “Anlage Unterhalt”

Basically, the monetary support given to your family (mother, father, grandparents, etc) back in India when are you are working in Germany, can be accounted for in the tax return).

Who can be supported?

Parents
Kids
Spouse/Ex-Spouse and so on

How much can be claimed in tax return?

Finanzamt has categorized India in Group 4. Basically, according to the group, the amount of money that you can claim varies. For India, one can support a member for up to 2200 euro per year.

How?

Fill in the Unterhalt form which is available as a supplementary form while tax declaration
The form has 4 pages, one the first page you have to mention your relationships with the supported person and get it approved (authorized) by relevant authority (example: Tasildhar)
In the other pages, you have to mention the income coming in (if any) for the members, their assets, pensions, etc
One separate form for each year and for each person supported has to be submitted
All the forms have to be authorized officially from India
Attach the details of the transfer (for example., receipt from online money transfer sites/apps AND the bank account details of the supported person

Tips!

Even though one can send up to 2200 euros, you have to take into consideration when you are actually doing the first transfer
Every month, only an equivalent of 2200/12 will be considered. If you transfer 2200 euros in the month of July, then only 1100 euros will be taken into consideration (as you have not supported the person for the first 6 months). Always, the time of the first transaction is taken into consideration.
It is wise to send it quarterly or even annually, but at the beginning of the year
You can support up to a certain number of persons but each of them should live in a separate household, and should not have other income in the home country

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