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. 

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.