Itr nri gift clubbing of income

Income Tax ITR Filing
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1

@Shrutika_Shah Thanks, Could you please educate me on the below scenario.
Me As an NRI Giving monthly fix amount to my wife (NOT NRI) from MY NRE ACCOUNT, which she is investing in Mutual funds in under her pan card. Total amount is less than 10 lakhs annually.
*Is it mandatory for her to file ITR as she is a not working and earning any income?
*If yes than where this amount has to be declared in ITR form?
*Will there be any inquiry on the ITR to provide source of funds?
*I am as a NRI not filing any ITR in India and have no income in India.
*Or she can avoid filing the ITR?
Thanks

2

Hey @BBS_31,

She can file the ITR and show this income as exempt income. Even if there is an enquiry, the source of funds can be easily justified.

1 Like
3

Thank you so much for your helpful reply @Surbhi_Pal

4

Thanks but mam gift is not a form of any income..Why even show in exempt income.
I wish to ask on same thing , my mother is planing to get gift from her sister which lives in dubai..How much amount she should get in a year ,so that she doesn’t fall in any issues under fema and itax act..and does she has to show it anywhere in income tax or any other form as its comin from foreign??

5

Hey @Sumit_Lehri

Any money or property received without consideration or for inadequate consideration, exceeding ₹50,000, is generally treated as a gift and becomes taxable under the head ‘‘Income from other sources’’. However, gifts received from specified relatives are exempt from tax. In the case of an individual, a sister qualifies as a relative, and therefore, any gift received from her is not taxable. For disclosure purposes, such exempt gifts can be reported under the ‘Exempt Income’ section in your ITR.

Hope this helps!

6

thanks for replying and is there any any limit for that or can i gift as much as i want..Any complications in fema?

7

Hey @Sumit_Lehri

Gifts received from a relative are fully exempt from tax in the hands of the recipient, irrespective of the amount. Under FEMA regulations, the total amount remitted under the LRS should not exceed USD 250,000 per financial year regarding gifts from Resident Indians to NRIs. But there is no prescribed limit when accepting gifts from NRI relative. However, it is advisable to consult a FEMA expert for guidance specific to your situation.

Hope this helps!

8

Should i show it in exempt income but gift is not a form for income..what would you suggest?

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I want to confirm about documentation work..Is it okay if i just purchase e stamp paper through online portal and make gift deed on it without notary or registering it..Will that be acceptable to department

10

Hey @Sumit_Lehri

Gift received from a specified relative is fully exempt from tax in the hands of the recipient but should be shown under Exempt Income in the ITR.

Hope this helps!

11

Hey @Sumit_Lehri

It is recommended to have the gift deed notarized.

Hope this helps!