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I live in India and have a friend of mine who lives in Italy.

He wants to send me money, as a gift. I'll probably be using that money to invest in stock market.

What I don't know is that how much money can he send and what are the taxes that would be applicable in this case?

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He wants to send me money, as a gift.

Do you know this friend? It could easily be a scam.

What I don't know is that how much money can he send and what are the taxes that would be applicable in this case?

There is no limit; you have to pay taxes as per your tax brackets. This will be added as "income from other sources".

I'll probably be using that money to invest in stock market.

If the idea is you will make profits from stock market and pay this back, you need to follow the Foreign Exchange Management Act. There are restrictions on transfer of funds outside of India.

  • Yes, I don't know this person personally but he is an accomplished dude (did my homework, he indeed is and no impersonation either). You are quite accurate in saying what my plan is (probably because I've been posting many questions related to stock exchange that you should be knowing me by now, haha). Anyway, can you please tell me the restriction on transfer of funds outside of India? – Anoneemus Apr 21 '17 at 9:57
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    @Anoneemus Read up the act. Initial link rbi.org.in/scripts/fema.aspx – Dheer Apr 21 '17 at 12:19

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