Gift from NRI to relative IT view on it

This query is : Resolved

Sanjay Dhaduti (Querist)
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15 March 2009 An NRI brother wants to gift his
1. sister
2. Niece ( minor age)
3. brother-in-law
each with Rs. 15 lacs thru an interbank money transfer mode.

How will it be viewed by the Income Tax Authorities of the gains made by
1. sister
2. Niece (minor age)
3. brother-in-law ?
Will it be taxed in the hands of the beneficiaries?
By what rate ?

chetan soni

chetan soni (Expert)
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16 March 2009 Few things to be noted in that case:

01. Money should not be return back to NRI in any mode.
02. Permission under FEMA needs to taken. I thing no need to take any permission if the gift amount does not exceed USD 5K per person p.a.
03. Needs to inform banker for that, and see any compliance needs to be done.
04. Made the gift deed duly signed & registered. Pay appropriate stamp duty.
05. Disclose in the income tax return for the same.

I will advice you to consult to professional for that.