# NRI Gift Tax — Gifts to and from NRIs

> Gifts between relatives (parents, children, spouse, siblings and others defined in the law) are not taxed in India. Gifts from non-relatives above ₹50,000 in a year are taxable for the recipient. Since July 2019, money or property gifted by a resident to an NRI is treated as income arising in India, so gifts to non-relative NRIs can be taxed here. FEMA separately limits what residents can send abroad (within the USD 250,000 LRS limit) and what property can be gifted to NRIs.

Practice: NRI Tax Services — https://www.industax.com/services/nri-tax/

Most family gifts — parents in India sending money to a child abroad, or an NRI gifting a flat to a parent — are tax-free if the giver and receiver are 'relatives' as defined. The paperwork still matters: a gift deed for property (with stamp duty) and bank records for money.

On the FEMA side, a resident can gift to an NRI relative within the LRS limit or credit an NRO account; residential or commercial property (not agricultural land) can be gifted to an NRI relative. Gifts received in the NRI's country may have their own reporting rules.

## Key facts

| Item | Detail |
| --- | --- |
| Gifts from relatives | Exempt |
| Gifts from non-relatives | Taxable if aggregate exceeds ₹50,000 in a year |
| Resident → NRI gifts | Deemed to accrue in India (Section 9(1)(viii), from July 2019) |
| FEMA money limit | Within LRS (USD 250,000 per FY) |
| FEMA property | Residential/commercial property can be gifted to NRI relatives; not agricultural land |

## Who needs this

- Parents gifting money or property to children abroad
- NRIs gifting assets to family in India
- NRIs receiving gifts from non-relatives

## What's included

- Relative and exemption check
- Gift deed and stamp duty guidance
- FEMA route for the transfer
- Tax reporting in ITR

## Documents

- Relationship proof
- Gift deed (for property)
- Bank transfer records

## Process

1. **Check** — Relationship, amount and asset type reviewed.
2. **Document** — Gift deed and transfer route set up.
3. **Report** — Reported correctly in the relevant returns.

## FAQs

### Is money sent by parents in India to their NRI child taxable?

No, gifts from parents are exempt as gifts from relatives, but the remittance must follow FEMA/LRS rules.

### Can an NRI gift a flat in India to their parents?

Yes. The gift is tax-free between relatives; a registered gift deed with stamp duty is needed.

### Can agricultural land be gifted to an NRI?

No. FEMA does not allow agricultural land, plantation property or farmhouses to be gifted to NRIs.

## Official sources

- Income Tax e-Filing portal: https://www.incometax.gov.in/
- Reserve Bank of India — FEMA directions: https://www.rbi.org.in/

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Canonical page: https://www.industax.com/services/nri-tax/nri-gift-tax
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.