• Question cash gifts from Indian resident to OCI

Hello

Need some clarification on a cash gift (about 3 lakhs INR) made from an Indian resident to an OCI holder in US. The cash will be sent thru normal international banking channels.

Does the donor have to declare the gift amount in India for tax purposes or is there any other tax implication for the donor?


Thanks
Ram B
Asked 10 days ago in Income Tax

No donor is not required to make any declaration of it's a gift under income tax but we need to check the same for FEMA compliance.

Naman Maloo
CA, Jaipur
3766 Answers
44 Consultations

5.0 on 5.0

In case of gift, tax is chargeable in the hands of receipent and it may attract clubbing provisions in the hands of donor if both donor and recipient does not fall under the definition of relative in income tax. We need the exact relationship between donor and donee to give you precise reply otherwise take phone consultation for detailed discussion.

Vivek Kumar Arora
CA, Delhi
3986 Answers
312 Consultations

5.0 on 5.0

Hi

 

Please specify the relation with the donor.

 

Under the income tax act, gifts from relatives are exempt from taxes.

Lakshita Bhandari
CA, Mumbai
5403 Answers
487 Consultations

5.0 on 5.0

Gifts to relatives are exempt.

Ruchi Goel Anchal
CA, Gurgaon
432 Answers
4 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

Gifts received from relatives are exempt from tax by virtue of Section 56 of the Income Tax Act. According to the IT Act, following persons would be considered as relative ​--spouse, brother or sister, brother or sister of the spouse, brother or sister of either of the parents, any lineal ascendant or descendent, any lineal ascendant or descendent of the spouse, spouse of the persons referred above.

 

Please check the relationship with the donor.

 

We may assist you further over call.

Payal Chhajed
CA, Mumbai
5039 Answers
137 Consultations

5.0 on 5.0

Hi

 

 Per the Income tax act, the sum of money received from any of your relatives are fully exempt from tax. Here the “relatives” term defines by the Income Tax act as follows :

  • Spouse of the individual
  • Brother or sister of the individual
  • Brother or sister of the spouse of the individual
  • Brother or sister of either of the parents of the individual
  • Any lineal ascendant or descendant of the individual
  • Any lineal ascendant or descendant of the spouse of the individual
  • Spouse of the person referred to in clauses (ii) to (vi).

Karishma Chhajer
CA, Jodhpur
2353 Answers
19 Consultations

5.0 on 5.0

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