Skip to main content

Gift Tax for NRIs under Finance Bill 2019

Gift Tax was introduced with an objective to impose a tax on receiving and giving gifts under certain specific circumstances. With the passing of the Finance Bill 2019 in Parliament, some changes have been made in the rule regarding the taxation of gifts given by resident individuals to NRIs. Earlier, only resident Indians were paying Income Tax on Gifts received of more than Rs 50,000/- except gifts received from relatives. However, NRIs receiving gifts from other people than relative would not disclose such as income because the tax laws were worded in such a way that the onus was on the recipient to disclose such gifts and then pay the gift tax. The Budget 2019, however, has plugged this loophole and brought such gifts under the gamut of income-tax. The proposal intends to make any gifts or any money paid to another person except for specified persons mentioned in the Income Tax Act taxable if it exceeds Rs 50,000 in a financial year and NRIs will have to disclose such gifts received from India and pay tax on it as per the tax rules applicable. This amendment has been applicable with effect from 5th July 2019.

Comments

Post a Comment

Popular posts from this blog

Pink City Jaipur Gets UNESCO World Heritage Tag!

The Walled City of  Jaipur,  popularly known as the 'Pink City' is famous for its iconic architectural legacy and vibrant culture, on July 6 made its entry into the UNESCO World Heritage Site list during the 43rd Session of the World Heritage Committee held at Baku, Azerbaijan. A World Heritage Site is a location having an “Outstanding Universal Value,” and has common significance for present and future generations of all humanity. The city was proposed to be nominated for its value of being an exemplary development in town planning and architecture that demonstrates an amalgamation and important exchange of ideas in the late medieval period. The city of Jaipur was founded in 1727 AD under the patronage of Sawai Jai Singh II. It serves as the capital city of the culturally-rich state of Rajasthan. Interestingly, this is India’s 38 th inscription into the World Heritage list, India already has 37 world heritage sites, that include 29 Cultural properties, 7 Natural propertie...
Post a Comment
Read more

Tarnetar Fair

One of the many vibrant festivals of Gujarat, Tarnetar Fair is the annual festival that takes place in Sundernagar,  Gujarat— a tiny village, about 200 km away from Ahmedabad.  This is inspired by  Draupadi's  swayamvara , and is a celebration of ethnic Gujarat’s folk-dance, music, costumes, and the arts, centered around young tribal men and women seeking marriage partners. Here many kinds of folk dances are performed; by far the most popular is the  raas , in which dancers hold sticks to clack against those of other dancers. As many as one to two hundred women perform  ramadas  in a single circle, to the beats of four drums at a time and the tunes of  jodia pavas  (double flutes). Rabari women of nearby Zalawad perform the famous circular folk dance called  rahado . Their marital status is indicated clearly by their costumes; a black  zimi  (skirt) means she is married. But if a woman is wearing a red  zimi , it means s...
Post a Comment
Read more

5 FEMA Rules Every NRI Should Know

The Foreign Exchange Management Act (FEMA) is a law enacted by the Government of India in 1999 to control the flow of foreign currency across Indian borders.FEMA aims to facilitate external trade and their payments in India, a systematic improvement and continuation of foreign exchange in the Indian market.It’s important for Indians working abroad to understand FEMA rules for NRIs very carefully since it can affect the way they can send and receive funds from India.Let’s look at five FEMA Regulations for NRIs: 1.        Maintaining a Bank Account You need to operate bank accounts that are specifically designated for NRIs. FEMA rules for NRIs do not allow holding a savings bank account.  There are 3 major types of accounts as stipulated by the Reserve Bank of India (RBI)that you can open: - NRO account  - If you want to send money earned abroad back to India. - NRE account  - For repatriable or moveable assets like securities and cas...
Post a Comment
Read more