Gifts under FEMA

This query is : Resolved

Sagar (Querist)
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01 March 2008 Problem: What is the procedure for a resident grandmother give a gift to her grandson, who is a non resident?
Facts: the grandmother and the grandson both have a joint NRO A/c in India. Without prejudice to your opinions the amount to be gifted is in Rupees say Rs. 20,000.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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03 March 2008 Please refer to the Liberalised Remittance Scheme. I think the quantum is US $ 5000 per donor per annum.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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03 March 2008 US$ 5000 PER ANNUM PER BENEFICIARY

Sagar

Sagar (Querist)
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04 March 2008 the query is modified to make it more precise

CA Manoj Kumar Jain

CA Manoj Kumar Jain (Expert)
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14 March 2008 as per Current Account Transaction Rule
@Gift remittance upto USD 5,000 per remitter/donor per annum is allowed, without any permission.

If payment has to made in INR then he can simply give a cheque and if payment has to made in Foreign exchange then Grand Mother need to give a request letter with Form A-2 to her Banker with the detail of Grandson's Bank account.

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