NRI Business owner (In foreign, not in India) - wants to gift shares of his company (Non Indian entity)

My father owns a private business in Middle East. He is NRI for over 10 years.
He wants to gift his company shares to wife, his son & his son’s wife. Note: Wife, son & son’s wife are Resident of India.

Are there any tax implications here ?

Are there any permissions required to be taken from RBI ? Any returns to be filed ? Any compliances with FEMA ?

Any inputs on the above subject would be of great help.


Hi @amits07

From the tax perspective, there shall be no such implications.

However, if they are a resident of India and they have shares in a foreign company, they will be required to report the same under Schedule FA while filing their ITR.