If a nephew gets gift money in his saving account from the NRE account of his uncle, how much limit of the gift money should be & whether the gift money is taxable for nephew?

Is it required to be documented?

  • 1
    Please turn off your CAPS lock. – BobbyScon Nov 15 '16 at 17:50
  • Gifts between close relatives are not taxable to the recipient in India and so the answer to your question depends on exactly how your uncle is related to you. A sibling of either of your parents is a close relative for tax purposes but a cousin who is colloquially referred to as a brother in India (more formally called a cousin-brother) is not. So, check your uncle's birth certificate! – Dilip Sarwate Nov 15 '16 at 18:08

From an India gift-tax point of view, you can receive unlimited funds from close relatives. So if you are getting this from your Father's Brother or Mother's Brother; then it is not taxable.

It is a good idea to document this if the amount is large. It serves as record for future. This can be a simple piece of paper or something that's type on Notarized document.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .