In this article I will be writing about the one of the important point regarding sending the gift as NRI and how long one has to maintain the NRI status to avail the gift tax exemption. This article explains the same. Read this article to know more about the NRI status. Please subscribe to our articles here.
NRI Status and Gift Tax
As we know, any gift made from your NRE account is fully tax exempt. But, the corresponding section says “He was in India for 182 days or more during the relevant previous year…thus the assessee is clearly not entitled to exemption (on gift tax)”. That means in the same year you gifted from your NRE account, then coming back to India and staying in India for more than 182 days, you cannot claim the tax exemption for your gift.
Levy of tax is governed by the Gift Tax Act under which a resident outside India is exempted from the tax if he gives a gift from his NRE Account.
However, in a current case the assessee, according to the tribunal, could not be considered as a resident outside India because he had stayed in the country for longer than 182 days during the financial year when the gift was made.
I hope this article will be useful for those who are gifting from abroad, and coming back to India shortly. That may impose tax liability for the gift. If you have any doubts please post it in the comments section.
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