GIFT from NRI

[Vartik Choksi]

A gift of Rs.6,00,000 is received by Resident Indian from NRI.   There are various options available with NRI to make the payment.  Either he gives gift from his Foreign Bank account or NRO A/c.

Please let me if any approvals of RBI is required to be taken. 

[kalyanaraman Venkatraman]

No permission is required from RBI, The amout has to be brought through normal banking channals.

 

[Mridul Sethi]

Also pls clear, is there any deduction will be made by bank as bank charges.

 

Regards,

Mridul Sethi

[kalyanaraman Venkatraman]

If it is trasnfered from NRO or NRE account normal no charges is applicable. may be RTGS/NEFT nominal charges will be levied.

If it is throgh inward remittance, Foreign Bank Charges will be applicable, i think it is USD 12.

in FIRC it should be clearly menioned as GIFT. If it received from Non-relative it is taxable in the hands of the recepiant.

[gangaram chandwani]

No approval is required from RBI but gift amount is considered as income of recipient(Donee) if donor is not a relative of donee as defined in Income Tax ACT.IT is advisable that donor make proper gift deed duly stamped with stamp duty of 2% of value (or as applicable in other states )if is being made NRO account in Maharastra. No stamp stamp duty will be chargeble if gift made in foreign country and a cheque dd or remittance is received. But a letter of gift must be obtained from donor. with best compliments to all.

AI Summary

Gift taxability: gifts from non-relative NRIs to resident recipients are taxable; use proper banking channel and documentation. No RBI approval is required for an NRI gift to a resident if funds come through normal banking channels (inward remittance or NRE/NRO transfer). The FIRC should record the payment as 'GIFT.' Bank and correspondent charges may apply. Gifts from non-relatives are taxable in the recipient's hands; gifts from relatives are not. Obtain a donor letter and consider a stamped gift deed where local stamp duty is applicable when the gift is formalized domestically.