Tax on the gift in foreign currency from elder brother

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2011 Hi,

My elder brother who is a US citizen wants to give a gift to me in the form of US dollars(Foreign currency) during his visit to our place in India.

1) What is the maximum limit of gift in foreign currency that he can give ?
2) Once I receive the gift, do I need to pay any gift tax ?
3) How do I maintain the proof of gift tax for future reference?

Thanks in advance,
Sandeep

Ravikant

Ravikant (Expert)
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22 February 2011 There is no Gift Tax.
Gifts from relatives are exempt.

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2011 If my brother gives me dollars in cash then what documentation should I maintain to show the proof of gift.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 February 2011 You should not accept dollars from him and request him to gift in Indian Rupees so that you can spend the money.

Otherwise tell him to remit the amount from US as and when he goes there and take gift from banking channels.

If you think that he will forget the things, tell him to give a cheque from his NRE or NRO A/c if there be any.

As per my information you can still take US $ 2000.

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2011 Hello Mr Paras,
Thanks for your response. Is the limit of $2000 applicable per financial year or it is only once in lifetime ?