As per the notification issued by the Reserve Bank Of India (RBI) on 16th Sep 2011, now individuals i.e. resident Indians are allowed to make gift money to their NRI/PIO close relative upto a maximum limit of $ 200,000 i.e Rs 96,00,000 (As per current conversion rate) in a financial year.
Lets have look at the detail specifications of the RBI Notification on gift in Rupees by resident individuals to NRI close relatives:-
- Individual remitting rupee for gift or donation should be a resident Indian
- The recipient of gift money should be a NRI (Non Resident Indian) or PIO (Person Of Indian Origin).
- The recipient (NRI/PIO) of gift money should be a close relative of the resident individual as per Section 6 of the company Act 1956.
- The money should be gifted either by crossed cheque or electronic transfer.
- The gift money should be credited to the NRO (Ordinary Non-Resident Rupee) account of the NRI/PIO and credit of such gift amount may be treated as an eligible credit to NRO a/c.
- The maximum amount of gift transfer allowed as per the RBI notification is USD 200,000 per financial year.
Meaning of close relative according to the Section 6 of the Companies Act, 1956:-
A person shall be deemed to be a relative of another if, and only if,-
- they are members of a Hindu undivided family; or
- they are husband and wife; or
- the one is related to the other in the manner indicated in Schedule IA.]
List of Relative, As per Schedule 1A :-
1. Father 2. Mother (including step-mother) 3. Son (including step-son)
4. Son’s wife 5. Daughter (including step-daughter) 6. Father’s father
7. Father’s mother 8. Mother’s mother 9 Mother’s father 10. Son’s son
11. Son’s Son’s wife 12. Son’s daughter 13.Son’s daughter’s husband
14. Daughter’s husband 15. Daughter’s son 16. Daughter’s son’s wife
17. Daughter’s daughter 18. Daughter’s daughter’s husband
19. Brother (including step-brother) 20. Brother’s wife
21. Sister (including step-sister) 22. Sister’s husbandAdvertisement