Gift taxability

[OM PRAKASH]

can an individual take gift of any amount from NRE a/c of a person residing outside india? or covered under the limit of Rs. 50000 where there is no blood relation

[Surender Gupta]

There is no bar for receiving gift from NRE account of a person residing outside India under Income Tax Act. However, under the provisions of section 56, the same should also meed the conditions for escaping income tax

AI Summary

Gifts from NRE accounts are tax-free if they comply with Section 56 rules; caution for non-relatives above Rs. 50,000. An individual can receive a gift of any amount from a Non-Resident External (NRE) account of a person residing outside India without restrictions under the Income Tax Act. However, to avoid income tax implications, the gift must comply with the conditions outlined in section 56 of the Act, particularly when there is no blood relation between the parties and the amount exceeds Rs. 50,000.