I have been asked to be an NRI sponsor for my cousin back in India. I cant personally fund this amount. So my aunt and uncle will be sending the money (around $75000) from a bank account in Dubai and I will have to send this to an educational institution in India.
Are there any tax consequences for me if I do this process? As I understand from the IRS website, I can claim upto $100000 as gift. Is there a limitation on who can gift?
I also read that there are no taxes that I have to pay for tuition (and no limits either).
Is my understanding correct or is there something I'm missing out?
Thank you.
