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October 2011

A.P. (DIR Series) Circular No. 17, dated 16-9-2011 — Gift in Rupees by Resident Individuals to NRI close relatives.

By Gaurang Gandhi | Chartered Accountant
Reading Time 1 mins
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This Circular permits a resident individual to make a rupee gift to a NRI/PIO who is a close relative of the resident individual (close relative as defined in section 6 of the Companies Act, 1956) by way of crossed cheque/electronic transfer. The amount should be credited to the Non-Resident (Ordinary) Rupee Account (NRO) account of the NRI/PIO.

The gift amount must be within the overall limit  of US $ 200,000 per financial year as permitted under the Liberalised Remittance Scheme (LRS) for a resident individual. The resident donor will have to ensure that the gift amount being remitted is under the LRS and all the remittances under the LRS during the financial year including the gift amount have not exceeded the limit prescribed under the LRS.

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