What Documentation is Needed for Gifting?

Gift deeds and records of transfer are vital for FEMA compliance and tax in India.

Are Cash Gifts Subject to Penalties?

Yes, cash gifts are subject to penalties in India, if the specific cash transaction limited stated under the Income Tax Act is violated. Under section 291ST of the IT Act, no person can accept a total of INR 2,00,000 or more in cash in a single transaction. It attracts penalties.

NRI Income Tax & Compliance

Rules for Tax on Gifting in India for NRI: Everything You Need to Know

By Ritesh Jain |Last Updated: November 14, 2025

Rules for Tax on Gifting in India for NRI: Everything You Need to Know

Gifting is one of the most popular ways NRIs support their family members, show appreciation, and celebrate special occasions. However, when it comes to sharing gifts across borders, it is subject to several tax and financial regulations.

The tax laws created on gifting and inheritance are specifically made to prevent tax evasion and money laundering. According to the FEMA (Foreign Exchange Management Act), NRIs can send gifts to residents. However, they must follow and comply with the tax guidelines. In short, understanding the rules for tax on gifting in India for NRIs is vital.

Ritesh Jain(Tax Expert)

Mr. Ritesh has 20 years of experience in taxation, accounting, business planning, organizational structuring, international trade financing, acquisitions, legal and secretarial services, MIS development, and a host of other areas. Mr Jain is a powerhouse of all things taxation.

Frequently Asked Questions

Generally, gifts received by NRIs from specified relatives or on certain occasions like marriage or birthdays are exempt from tax in India. However, if the gift is more than INR 50,000 from non-relatives is taxable. It is considered income and under the "income from other sources" head, it is taxed.

Yes, if the total value of the gift received from non-relatives is more than INR 50,000 in a financial year, then it is taxable in India. Further, gifts from relatives are tax-free in India regardless of the tax amount.

Yes, under the Foreign Exchange Management Act (FEMA) regulations, NRIs can gift money to residents in India without any tax limits. However, the tax implications of the gifting amount depend on the relationship between the receiver and the sender.

Under the Liberalized Remittance Scheme (LRS) of the RBI, Indian residents, per financial year, can transfer up to $250,000. If they want to send a larger amount than the specific limit, they need to obtain permission from the RBI. Further, in case of sale proceeds, NRIs have the permission to remit up to $1 million in a financial year. Considering this, all transactions should be made as per the FEMA guidelines for NRIs.

For NRIs, the tax obligations of property gifts in India primarily depend on the relationship he/she share with the giver and the value of the stamp duty of the property, with specific tax regulations stated under the IT and FEMA Act.

Rules for Tax on Gifting in India for NRI: Everything You Need to Know

Frequently Asked Questions

Are Gifts Received by NRIs in India Taxable?

Is There Any Threshold for Taxable Gifts?

Can NRIs Gift Money to Residents in India Without Tax limits?

Are There Restrictions on Sending Gifts Abroad by NRIs?

How are Property Gifts Treated for NRIs?

Rules for Tax on Gifting in India for NRI: Everything You Need to Know

Frequently Asked Questions

Are Gifts Received by NRIs in India Taxable?

Is There Any Threshold for Taxable Gifts?

Can NRIs Gift Money to Residents in India Without Tax limits?

Are There Restrictions on Sending Gifts Abroad by NRIs?

How are Property Gifts Treated for NRIs?