08 November 2023
Hi, Can any one solve below mentioned My query
Suppose Indian resident Sister gift a watch to her brother who is non resident india and Non resident brother gift A INR rupees from NRO account to indian resident Sister What is Implication Under FEMA Act is there any limit to rceipt INR gift Under FEMA What is the Tax implication as per Income tax Act as well Give refrence to check
08 November 2023
As per "Liberalized Remittance Scheme (LRS)", Indian resident may withdraw Foreign Exchange Equivalent to Rs. 2.5 Lakhs for any Financial Year for permissible Current and Capital Account Transactions.
Thus In my opinion withdrawal of foreign exchange for GIFT is current account transaction and permissible as above.
CAclubindia
