Gift to nri

Others 775 views 4 replies

According to civil laws, can a HUF gift to anybody ?

A non relative (say  HUF ) wishes to gift a substential amount  to a foreign citizen of Indian origin (HUF KARTA'S cousin).

What are Income Tax, Gift Tax & FERA implications ?

 

Replies (4)

Gift tax is no more. Under Income tax the gift made by any person to Non residents are not  taxable.FEMA implications no idea.

As per Schedule III of FEMA restricts Gift/ Donation in excess of USD 5000 outside India.

Hence any gift above 5000 USD outside India required RBI's prior permission.

However under LRS( Liberalised Remittance Scheme) only a resident Individual of India can remit money upto 2,00,000 USD without RBI's prior approval outside India.

Hence in your case since it is HUF which is remitting money by way of gift outside India it requires RBI's prior permission for any sum of money exceeding 5000 USD.

 

Thanx for reply.

You mean LRS is applicable for individuals, & not for other entities like HUF in this case.!!

But Ist point is whether a HUF can give a gift of say 30 L INR to any body ?

I have not seen rider in any law which prohibit HUF to give gift to anybody. HUF can give gift to anyone.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register