TAXATION OF GIFTS RECEIVED - Here Are The Things You Need To Know

[@sampathr2]

Very very clear explanations about gift tax and its implications in IT act and FEMA. Tks for sharing.

[@AshokKumar-2113]

Thanks for your help and support for NRI Community.

[@sunitathakur7713]

Excellent video explaining about gift to our relatives

[@venkateshrb5284]

Excellent video with ALL questions answered very clearly

[@unnimk75]

Very good video sir. Questions were well organized and asked . Cleared all my doubts . Thanks a lot

[@vidyarao7930]

Thank you for this detailed information. God bless you.

[@sundieepsiingh9697]

Excellent information. Many thanks.

[@6710rohit6710]

Sir, your videos explain topics with extreme clarity. Thank you

[@vinayaktiwari4383]

Question: Farm land > Sister/Brother (resident Indian) inherits all property and then sells the land > then transfer full money to NRI/OCI sibling > will it be taxed (provided all taxes have been paid by Sister/Brother alreaedy) ? My Understanding : No tax ..money can be transferred as per the LRS scheme !

[@ajaxtyson]

Great video sir. Thanks for sharing this. As a token of respect as a viewer, I don't skip ads for your videos.

[@satviklifestyle]

Sir, Can an OCI holder NRI doesn't have any income and PAN receive gift in US by LRS scheme?

[@CMALALITKUMBHAR]

If gift received in inadequate consideration and sold then what cost of aquation?

[@sriramrao2514]

Inadequate consideration + amount which got taxed u/s 56(2)(x) in the year of receiving gift

[@NRIMoneyClinic]

Please consult a chartered accountant

[@manjularao4206]

Thank you sir, very helpful and informative.

[@b1njax]

Sir what needs to be done when the immovable property is given as gift jointly to NRI and a resident?

[@gopikrishnanjayaraman1550]

As usual, clear explanation. Thanks sir. 🙏🏼

[@motivationshortsadda]

As usual useful video. Waiting for the video on how NRIs can invest in the Indian stock market as the process is not straightforward. So, I am looking forward to that. Thank you!

[@anastasiamahal1432]

Me too

[@venugopalansekharan3367]

Well explained. Thanks. Best wishes in your endeavour.

[@brendastuntz1727]

When it comes to the matter of an international relationship. If I were to send my long-time boyfriend (we have intentions of marrying) a gift he will have to pay income tax on it because we aren't yet married? And how do we value something that isn't brand new? For example if I were to send him a shared sweater between eachother then how would I declare that on the customs forms? What if it were his own sweater he had left behind and i'm sending it to him? How is that declared and will he have to pay tax on that?

[@satviklifestyle]

If I receive gift of 2.5 lakhs from non relative how much tax I need to pay and if there is no other income

[@tia7765]

Hi do you have a solution im in a similar situation.

[@satviklifestyle]

@@tia7765 File 80G

[@kayceechavez4517]

What is eKYC? Does the number change once person changes citizenship? & do we need to update changes in KYC website too

[@sudhirpattath5214]

Hello - Very informative series. Appreciate the thoroughness. A question related to Gifts from Relatives. If I receive a cash gift from a qualified relative. What are my options to repatriate it? Should the relative transfer funds to my NRO and than I either transfer to NRE and subsequently repatriate it? Or, can the relative directly transfer to my NRE account? Thanks again!

[@wordsforlife316]

Does donor need to present in india for signing gift deed

[@tourist3066]

Can OCI's buy converted land of say 50 cents or 1 acre or stick to only flats or bungalows

[@sriramrao2514]

They can buy...

[@PAPatil-vr3qz]

Daughter in law ( Forien citizen) if gift money to Mother in law who is Indian Citizen is it taxable both under gift tax or income tax tax law ??

[@kirankanani5359]

. I am CA Kiran Kanani from Pune . I attended your webinar on GIFT It was very elaborate and helped a lot in understanding the other related issues. My question during the session was on clubbing provisions U/Sec.64(2)..Co parcener converting his individual property into HUF and subsequent issues of clubbing provisions..as per sec. 64(2). Legally the capital gain should be clubbed in his hand on sell of the said property by HUF. Can the benefits of Sec 54F be enjoyed by HUF or the said individual if his name is added , when HUF buys a residential property and HUF and the said individual become joint owner of the new residential property. Plz guide.

[@sriramrao2514]

In my view, the re-investment on sale of property should be made by HUF and reminder capital gains, if any would be clubbed in the hands of individual co parcener.

[@ragavendars]

Crystal clear explanation

[@jagadishraom.r.5313]

can a nri receive agricultural land situated out side India as gift ?

[@thomas9469]

Sir I have a question house owned by my father in India and he can sell and gift the money to the son who is on US and there is any tax when father transfer to uS.

[@sriramrao2514]

Sale of property would trigger capital gain taxes… if father being a resident remitting funds abroad directly under LRS, TCS would apply… you can watch videos on Liberalised remittance scheme and $ 1 million scheme on repatriation of funds in this channel and be guided

[@thomas9469]

@@sriramrao2514 Thank you sir for the support.

[@tia7765]

​@@sriramrao2514i have a question i hope you can shed some light. My mother is selling her flat next month and is scheduled to file her CGT next year. She will receive proceeds as soon as sales deed is signed which is August this year. She plans on sharing the proceeds with me and my sister. Which is about 60 lacs. Can she do the transfer of funds to us before filing her CGT and by her distributing the proceeds now will it have affect on her final filing of CGT? How will it affect her taxes since shes reducing the sales proceeds.

[@copysanjay]

How do we as NRI account in income tax for inheritance money received as a FD nominee left by deceased parent? It was transferred by parent's bank to NRO account.

[@sriramrao2514]

Anything inherited is not taxable in India

[@jatinderahuja2212]

Can the Gift money be deposited in the NRO account?

[@rambond7539]

Thanks, good information

[@Nukie9]

Can a Nri son gift x amt for inadequate consideration to his father account then can do business.?

[@NRIMoneyClinic]

Please consult a chartered accountant

[@johnsondavid3867]

Very informative video

[@sadagopannarayanasamy806]

Thank you. What about the registration duty payable on transfer of property as a gift between relatives? Is that payable or waived? Also please clarify the capital gains tax incidence on transfer of property between relatives. Thanks and Appreciate.

[@sriramrao2514]

Registration charges are state subject and has to be paid as applicable in each state…. Gift of property between relatives as explained in this video is not taxable… However transfer of property for a consideration between relatives is liable for taxes… about capital gains in this regard, there are separate series of video in this channel, you can watch them and be guided….

[@dranuragz]

What are the tax implications of an NRI brother gifting to a US citizen sister: - Gift is money (through fund transfer) - from funds based in India, which have been earned in India - Funds will be transferred from Indian bank account to US bank account through wire transfer What are the tax implications (under Indian law) on the donor and the donee?

[@sriramrao2514]

No taxes as they are blood relatives…

[@rambaskaran1729]

Simply put can we say Blood Relatives of self and spouse are exempt from gift tax! How about uncles, aunts cousins, nephews, nieces Grandchildren, Grand nephews, grand nieces? ?

[@sriramrao2514]

Check the timeline 6.20… they are the only relatives…

[@sadashivats]

Thanks a lot sir for this wonderful video, clarifies lot of doubts, btw is there any provision to declare the gift received while filing IT returns?

[@sriramrao2514]

Yes

[@pramoddsinghful]

Very nice video.

[@suvobrataghosh2540]

Sir please make a video on tax treatment on rental income received from overseas properties by a resident Indian. Will the income be considered as rental income with allowable deductions?

[@jacobzachariah9756]

Is it correct that cash and movable property can be gifted and the requisite document evidencing proof of the fact of gift can be on plain paper ? The CA appeared to have said so.

[@sriramrao2514]

Yes…

[@khajuriaarun8874]

Hallo Sir, Gifts on marriage should be done before marriage or post marriage. Is this also possible if the marriage of an NRI takes place out of India with another indian or NRI or non indian? Now if it is moveable gift or as cash in an NRO a/c, then there will be only tax on interest earned on it and then money can be repatriated to foreign country without any problem. But what happened in case gift is an immoveable property. At the time of selling again TDS will be active on the sold price. How will here be capital gain calculated for final tax, as the investment on property is zero , because it has been gifted by close relative. Would it be the whole selling considered as capital gain? Thanks in advance , Sir.

[@dineshkumarsharma3710]

Excellent

[@homevideos9297]

I am an OCI holder & my mother wants to gift me 20 lakhs from her bank account. (Transfer from her bank to my foreign bank a/c) I checked with an indian accountant, who says I have to pay tax for any amount received beyond 7 lakhs and need to file IT returns just to get back the tax paid for this transfer & to accept this from my mother. What forms, if any, I should be filling to receive this money tax free? Please advise

[@sriramrao2514]

The Gift will neither be taxed in your hand as a receiver nor in your mother's hand as a giver... The fund which would be transferred from a Resident to Non-resident would be covered by LRS under FEMA and as per Income Tax Act, if the fund which is being transferred exceeds ₹ 7 lakhs p.a. then there would be TCS applicable on the same, which your mother as a resident has to pay and she can adjust the same against he tax liability on any income in India orelse it would be refunded upon filing of return of income. This is TCS which is being collected upfront and gift as such is not getting taxed. There is a possible remedy for this and can be availed from any professional on consultancy.

[@homevideos9297]

@@sriramrao2514 Thank you for your detail explanation on the applicable TCS. But the issue is, it again involves waiting for the refund and mainly filing the returns, which is very cumbersome for her to do. Is there any way to get the gift money transferred without going through TCS process? You also suggest a possible remedy for this. Can you please explain ? And please let me know if you offer your services in Bangalore? Thanks a lot in advance.

[@rabirandhawa3555]

My 3 year old daughter is an Australian citizen. And he is OCI holder. I have paternal ancestral land which we got from generation to generation. Can I transfer my land to my daughter's name? Please let me know how to get the land transferred so that he does not face any problem in future

[@sriramrao2514]

Property, other than agricultural/plantation/farm house etc can be transferred now… if it is agri. property then it can only be inherited

[@vipanmahajan]

Gift to spouse and huf not covered. If I gift 100000 to my huf and including this amount, huf does not have income beyond taxable limit, will it remain tax free?

[@sriramrao2514]

Yes, gift received by HUF will be covered by basic slab… hence the gift will not attract tax

[@vipanmahajan]

@@sriramrao2514 thanks

[@ashokkumarpudhiyamanidhan9843]

Great 👍

[@Rix1221]

Anyone made international transfers to India using Wise/Remitly/etc. 1. How do you procure FIRC certificate for non-business transactions? Is this mandatory? 2. How do I know if my transaction follows MTSS or RDA remittance method?(I'm concerned MTSS has a $2500 limit per transaction but my bank is not showing any limits while transferring)

[@sunilj10]

How does this contrast with clubbing of income u/s 64 of IT?

[@narayanannair3910]

How to show in ITR funds reced from NRI son through nre bank account to my account in india?

[@sriramrao2514]

Why to show it? Is it an income which is chargeable to tax???

[@aasthasingh5006]

Hello sir , Gift from NRI relative upto us $ 14000 is exempt from tax ,whether the person receiving gift from NRI is shown in his return of income as gift .Since in India gift from relative is exempt from tax under section 56 (2)(x) Please suggest 🙏

[@sathishkumarshanmugavel673]

Can a NRI send money to parents, who can buy property on NRI? Does this property sale deed attracts tax of NRI category like 28%

[@charlesmachado9500]

NRI can gift a residential flat give as a gift to son or daughter who become a US citizen as tax free.

[@sriramrao2514]

It will not be taxable in India

[@manojumaeku]

Can bank statements be considered as a proof for cash received/sent, from/to the relative?

[@sriramrao2514]

No, cash gift requires certificate/declaration as a proof… bank statement will not prove from whom it is received

[@manojumaeku]

@@sriramrao2514 Thanks. Appreciate your timely response.

[@manojumaeku]

@@sriramrao2514 I thought about this once again. Believe I missed mentioning the finer details of my question earlier. The reason I am bringing this question once again is that there might be a regular transfer to parents, especially from NRI's, and would not be practically possible to have a letter signed physically, every time transaction is done. What if? We have the bank statements of both the senders and recipients showing the transfer "To" and "from". This will have the details of the sender, receiver, and account details, Also anytime one should be able to prove the parental relationship, with a passport or other legal documents. For eg., I transfer X amount to my father. As a proof, I download the bank statements of both for that day with the account details and the transaction line item.

[@amarjitbajaj2075]

Very informative, sir. I have a question. Does a NRI( residing in USA) receiving a cash gift from a relative in India has to pay any tax? If yes, is there a threshold limit? Thanks.

[@sriramrao2514]

No tax, but there may be penalty if the gift amount exceeds ₹ 2 lakhs...

[@khajuriaarun8874]

@@sriramrao2514 you told gift from relative is tax free, what you mean here with penality, when gift exceeds 2 lakhs Rs. Please let me know in detail. Thanks.

[@pbvrajan5623]

Would the income generated out if the gift funds taxable in subsequent years?

[@sriramrao2514]

Yes

[@ksk8080-d6d]

Hi Sir, My parents gift my toddler who is NRI. I understand no tax implications on this case. Does interest earned on this gift over years needs to be clubbed under my income or it can be considered seperately as my minor daughter's income?

[@sriramrao2514]

Yes, it needs to be clubbed in your hands

[@zeebsz320]

Dear Mr. Sriram My g. Mother passed away while I was a minor of just 7 years old and made me nominee to her FD. I am NRI due to my mother live abroad. My natural mother took charge of the amount and made seperate NRO FD account. Doesn't this amount received by my g. Mother become a gift? So when we opened NRO account why TDS by our bank? Besides for tax filing being a minor, my account blocked with IT and as a result could not claim taxes deducted. Pls advise

[@sriramrao2514]

Income is generated out of gift fund… that income is being taxed and not the gift fund itself… hence TDS in such income is being deducted Income needs to be declared by your mother as you are a minor… she can claim TDS while filing her return of income even though TDS is deducted under your PAN

[@khajuriaarun8874]

Hallo, Sir, if the gift is immoveable or moveable like bank transaction from resident indian to NRI in his foreign a/c or NRE or NRO , what would be the Tax percentage . Thanks in anticipation. Om Shanti

[@NRIMoneyClinic]

There is a detailed video on taxation of gifts on this channel. Please be guided

[@pradipkumarsaxena]

Thanks sir for excellent description. Sir, I want to get confirmation on my understanding as follows: Suppose I transfer 10L each from my genuine SB a/c as GIFT to my son n my daughter-in-law living in Australia in their separate Bank a/c there under LRS on 2 close different dates. Then, whether I will get TCS exemption of 7L in BOTH cases? ie on total transfer of 20L to them, total TCS of 1.20L on balance 6L will be deducted @20% SEPARATELY ie 60k in each transfer? And this 1.20L TCS will be adjusted in my Tax liability by way of ITR in that year? KINDLY REPLY/CONFIRM SURELY as they need funds there. Thanks n Regards

[@surendrabarsode8959]

Excellent video. Thanks!! Perhaps if you make PPT and explain by way of a tree diagram, ideas may be more clearly and easily expressed. CA Sriram can talk like a Professor giving PPT based lectures to his students! You are showing a few slides in between but they contain text covering definitions only.

[@rajagopalanjayakumaran7110]

Can a mother (73 yrs old- widow with family pension source) buy a property in India with the gift-source of big sum gifted from her daughter-(NRI) w/o making any gift-deed as per IT Act?

[@sriramrao2514]

Why not??

[@rajagopalanjayakumaran7110]

,That means mother's source of money can be shown as gift (bank transfer of funds) for purchase of property in her name w/o documentary proof like Gift-Deed?

[@thepurposeofmyexistence2511]

Dear sir , in case i gifted my wife in a year , 3 plots , and my wife paid stamp duty of registration of a single plot 65,000 , so for 3 plots =3x65,000=195,000 , so asper sec 56 2x , does my wife laible to pay tax

[@sriramrao2514]

No

[@Varghese9652]

Hello, As an NRO account holder, I will get some funds (Over 20Lakh) as a gift from a resident relative which will therefore be tax free as per my understanding. My question is, Will I be able to repatriate that received funds to a foreign bank account without any tax implications from NRO account itself?

[@sriramrao2514]

Yes, possible

[@satviklifestyle]

@@sriramrao2514 but you said there is a penalty over 2 lakhs?

[@sriramrao2514]

@@satviklifestyle penalty leviable if GIFT received in cash… if gift received via cheque, bank transfers etc., penalty will not apply

[@loydsouza3504]

Excellent video. Thanks for the same. I am hoping you can clarify one point. I am an NRI and I am expecting a gift of Rs. 20 lakhs from my sister, which will be from the sale of a flat which was in her name. The flat originally belonged to my mother. This will be a gift. Since this is a large sum will be be added to my income in India. I do get dividends from some of my investments or will it be treated separately as it is a gift. So will I have to pay some kind of tax since it is quite a large sum. Thanks.

[@avatarprintpack1944]

please let me know tax liability in U S A on receiving funds from father and mother from India.

[@sriramrao2514]

Advisable to consult a CPA in USA in this regard

[@PAPatil-vr3qz]

What s about daughter in law ??

[@bramhagyani5018]

If grandson wish to transfer amount to his grandmother's bank account for medical expenses, then is it considered as a tax free gift? Is it necessary to make documents for this or only bank statement is enough? Thanks for your informative video.

[@sriramrao2514]

Yes, it is tax free gift... simple letter would suffice

[@rajeevsingh-zw7qr]

I am an NRI with plans to return to India in the coming years. I want to have agricultural land but because of my status as of now, I can not buy that. Is it possible for my father or brother to gift to me?

[@NRIMoneyClinic]

If you are a NRI , No

[@rajeevsingh-zw7qr]

@@NRIMoneyClinic what if I stay over six months in India an then accept gift( agricultural land)from my family in the same year and travel abroad after that.

[@sriramrao2514]

@@rajeevsingh-zw7qr This is also not possible as it is an intentional act... moreover, it would not be sufficient you stay for 182 days to become resident as per FEMA... the rules of residency also depends on intention..

[@khajuriaarun8874]

Hallo Mr. Bhatt n Mr. Rao, how can I prove my sibling relation with my sister, she's above 80 yrs n has no birth certificate or school leaving certificate. Is this possible by writing an affidavit. I have been staying in Germany for almost 40 yrs n have no rationcard with her. I will feel highly helped for ur advice. Thanks in advance.

[@sramesh155]

I am a US Citizen. my mother in India wants to gift cash for me and my daughters. What is the limit? Would the letter that you stated suffice as income source to deposit the money in my NRO account and what is the limit on a day to deposit in my NRO Savings account? and would it be tax free? Will I be taxed in US? Thanks in advance!

[@sriramrao2514]

There is no limit on gifts between relatives… but cash gifts has a limit of 2 lakhs (there is a video in this channel in respect cash transactions in India)… letter would suffice as proof of gift… but source needs to be proved separately

[@sramesh155]

@@sriramrao2514 thank you 🙏

[@mahsin123]

Can I gift cash to my son-in-law on behalf of my daughter who has no account in any bank in India

[@sriramrao2514]

Yes, possible… however, cash gift in excess of ₹ 2 lakhs would be liable for 100% penalty… you can watch another video on cash transactions in this channel and be guided…

[@sumanjacob4509]

So if an NRI becomes a regular Indian resident can he / she buy agricultural land?

[@sriramrao2514]

Yes, very much possible, however it has to be noted that if one becomes resident only for the purpose of purchase of agri land & later again becomes NRI as per FEMA, then it would amount to violation if the intent could not be proved otherwise.

[@shakeelrather6340]

Thankyou sir .

[@sandoc3521]

Mr Bhat & Mr.Shriram ..your NRI related videos are very informative and helpful. Thank you. I am gulf based NRI planning to return soon . What are the implications of transferring my part of my NRI funds transfer to my daughter who is recently become NRI after completing her studies in Australia & employed. Can I prepare FCNR deposit in her name .

[@sriramrao2514]

Yes, you can...

[@alagarsamykannan9309]

Sir, I am an NRI. If I transfer 10 lakhs to my daughter account, 10 lakhs will be treated as income for her in that financial year for tax computation for that year?.

[@NRIMoneyClinic]

Transfer of cash in this case is not income

[@manmohanarora8064]

HUF can gift to their co partioner ?

[@sriramrao2514]

Yes, possible

[@vinolife]

If the gift is given by the employer to the employee in the form of gold or vouchers upto value of Rs. 50,000/-, is it taxable?

[@sriramrao2514]

Under employer & employee relationship, concept of gift is normally termed as perquisites… taxation rules for perks is separate

[@ranganathrajachari5921]

Is gift in the form of money through cheques/transfer through banking channel requires evidence in writing on stamp paper? Does the document needs to be registered by paying stamp duty? If yes, how much stamp duty is required to be paid?

[@sriramrao2514]

Not required…

[@ushaathavale5518]

My daughter is in ऑस्ट्रेलिया. Her PPF account is maturing on April 2024. She wants to take thIs amount to ऑस्ट्रेलिया.PPF is tax free in India Will this amount be taxed in Australia?

[@sriramrao2514]

In my view YES… confirm with tax consultant in Australia for better clarity

[@nokiak4095]

Hello sir , If already tax paid money 2lakhs of mine gifted to a friend ,then will be 2lakhs taxable income for my friend ? If so then the amount is taxed two times right ( already taxed in my hands and now again taxable income to friend) ?? 2) if any income or interest arised from the gifted amount to friend ,then is it taxable income for me or friend ?

[@sriramrao2514]

Ans: 1) No, it is not considered as double taxation. 2) Your friend has to pay tax...

[@nokiak4095]

@@sriramrao2514 Thank you sir , 1) So you mean gifted 2lakhs amount will be taxable income to my friend again right ?? 2) you said income(through equity investments or interest) arised from gifted amount is taxable in his hand then wouldnt the clubbed income provisions apply here ? Section 60 or 61 ...

[@praveenvarma1369]

Sir any rules for NRI giving gift or money to resident Indians?

[@mrinalkantisaha781]

I have received one lakh from my mother in law through NEFT, how can it be treated as far as income tax rules are concerned? Kindly guide me, Your generous reply is awaited.

[@sriramrao2514]

It is very well answered in the video, please see video fully

[@rsgauba7401]

Can a NRI send money to his/her parents through NRE account? Will it be taxable for parents? I am sure you will never reply but still I am making attempt.

[@sriramrao2514]

Your question has answer in video itself…

[@sadasivasarma6895]

I understand that you can't gift to your spouse .Is it true

[@sriramrao2514]

Your question is answered in video itself…

[@SurajInd89]

Why not? As per the video, spouse is considered relative and the gift will be completely tax free.

[@shreemoydash7426]

Very informative as always Sir one query -do in-laws comes under relatives?

[@sriramrao2514]

Please see the video fully, it is very well answered

[@SurajInd89]

Yes

[@maniiyer2413]

When a NRI send money from USA to his self account in india will it attract gift tax in USA ?? Is there any limit for such a remittance??

[@sriramrao2514]

Can anyone give gift to themselves? If you put money from one pocket to another, will it be gift??

[@ashokjain2950]

Can husband give gift to wife and vice versa

[@sriramrao2514]

Please see the video fully, it is very well answered

[@sadasivasarma6895]

I mean tax free