Tax on Gift to NRI

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indira (Querist)
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22 October 2008 Dear all,
I am remitting an amount of Rs.300,000 to my sister in law in Ireland and quoting the reason as Gift. Is there any liability by me or her as per income tax act. or gift tax act? if so what is the amount?

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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22 October 2008 Gift to sister-in-law is a tax free income in the latter's hands u/s 56 of The Income Tax Act, 1961.

In my opinion, the registration charges are the only charges which is to be paid for the transaction in the nature of Gift since Gift Tax Act is abolished.

As regards the remittance of Rs 300,000/- by way of Gift to NRI, relevant provisions of The FEMA Act are also to be observed

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 October 2008 Mr. Shaliesh,do they have to register, as per law,since the gifted property is movable in nature.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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23 October 2008 No need to register, just a letter of gift is sufficient. It is better that the letter is acknowledged for the benefit of the donor's records.

indira

indira (Querist)
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23 October 2008 Dear Sir,

As my sister-in-law lives abroad (even if she were to be some one else i mean if not a relative) how can it be taxed as per indian Income Tax Act? Actually I am sending Rs.12 lacs in 4 transactions to her this week from my personal account with a multi national bank? Is there any implication on me for these transactions?

R. Soumyanarayanan

R. Soumyanarayanan (Expert)
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24 October 2008 Dear indira madam,

If the donee is not ur relative and if she is a non-resident or a not ordinarily resident, then it is not taxable.

no need to worry.
R.Soumyanarayanan

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