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

Gift taxability: gifts from non-resident NRE accounts are permissible but subject to statutory conditions to avoid income tax. There is no prohibition on receiving gifts from an NRE account of a person residing outside India under the Income Tax Act; however, the receipt will avoid income tax only if it meets the statutory conditions governing taxation of gifts and related exemptions.