01 March 2008
Problem: What is the procedure for a resident grandmother give a gift to her grandson, who is a non resident? Facts: the grandmother and the grandson both have a joint NRO A/c in India. Without prejudice to your opinions the amount to be gifted is in Rupees say Rs. 20,000.
14 March 2008
as per Current Account Transaction Rule @Gift remittance upto USD 5,000 per remitter/donor per annum is allowed, without any permission.
If payment has to made in INR then he can simply give a cheque and if payment has to made in Foreign exchange then Grand Mother need to give a request letter with Form A-2 to her Banker with the detail of Grandson's Bank account.
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