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NRI Taxation:NRI Gifts Exempt From Gift Tax |
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The following gifts made by an NRI up to 30-9-1998 enjoy absolute exemption from Gift Tax under Indian Gift Tax Act:
• Gifts by way of foreign currency remittances or gifts out of NRE/FCNR A/cs in India made to any person.
• Gifts made to any relative, of any shares, debentures or deposits of public companies and Central Government securities invested through foreign currency remittances or out of NRE/FCNR A/cs in India. For this purpose 'relative' would mean husband, wife, brother, sister or any lineal ascendant or descendant of the NRI.
• Gifts made once out of the NRI A/c to any person.
• Gifts of SBI Dollars Bonds or India Development Bonds made to any person. This exemption can be availed of even after the NRI becomes a resident. With effect from 1/10/1998, all Gifts either by residents or non-residents are tax free, since the Gift Tax Act have been repealed.
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