How Much Money Can An Indian Gift In Foreign Exchange To A Person Resident Outside India?

April 6, 2008 by taxworry · Leave a Comment

How much money can an Indian mother gift to her son(British national now but Indian national previously) to be take to UK and what is the process of doing it. Does it require any special permissions or declaration.Amit Shah

Thanks to burgeoning foreign exchange kitty of India, Reserve Bank Of India introduced Liberalised Remittance Scheme under which now Indian resident can give gift or donation of US D 2,00,000 in one Financial Year to any one resident outside India which includes charitable/educational /religious trusts etc. Read below the FAQ given on RBI site

18. How much foreign exchange can a resident individual send as gift / donation to a person resident outside India?

Limit of USD 200,000 per financial year under the Liberalised Remittance Scheme would also include remittances towards gift and donation by a resident individual. Accordingly, under the Scheme, any resident individual, if he so desires, may remit the entire limit of USD 200,000 in one financial year as gift to a person residing outside India or as donation to a charitable/educational/ religious/cultural organization outside India. Remittances exceeding the limit will require prior permission from the Reserve Bank.

What should be the process?
As can be seen , no approval is required for gift of USD 2,00,000 in one financial year. However, as person giving gift should prepare a gift deed stating clearly

The name and address of the person whom gift is being given.

The mode of giving gift.

The deed should be signed by the person giving gift .

The person getting gift should sign the gift deed accepting the gift.

The gift deed should be notarized in the local court where the donor resides.

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