Under the Indian Income Tax Act, gifts received from specified relatives are exempt from tax, regardless of the amount. These relatives include:

• Spouse: This refers to the husband or wife of the individual.
• Siblings: This includes the brother or sister of the individual.
• Siblings of Spouse: This covers the brother or sister of the individual’s spouse.
• Siblings of Parents: This includes the brother or sister of either of the individual’s parents.
• Lineal Ascendants and Descendants: This category includes parents (mother and father), grandparents (grandmother and grandfather), children (son and daughter), and grandchildren (grandson and granddaughter) of the individual.
• Spouse of Lineal Ascendants and Descendants: This includes the spouse of the individual’s children (son-in-law or daughter-in-law) and the spouse of the individual’s grandchildren.

Gifts from these specified relatives are not subject to tax, regardless of the amount. However, gifts from non-relatives are taxable if the total value exceeds ₹50,000 in a financial year. It’s important to maintain proper documentation of such gifts to substantiate the relationship and the tax-exempt status if required by tax authorities.

Repatriating funds from NRO and NRE accounts involves different rules and limits, and understanding these can help NRIs manage their finances effectively.

NRE Account Repatriation:

• Full Repatriability: Funds in an NRE (Non-Resident External) account, including both principal and interest, are fully repatriable. This means you can transfer the entire balance to your country of residence without any restrictions.
• Purpose: NRE accounts are designed to hold foreign income, and the repatriability feature makes them ideal for NRIs who want to maintain their savings in Indian rupees while having the flexibility to move funds abroad.

NRO Account Repatriation:

• Limited Repatriability: Funds in an NRO (Non-Resident Ordinary) account are subject to repatriation limits. NRIs can repatriate up to USD 1 million per financial year, including all current income and sale proceeds of assets, subject to applicable taxes.
• Documentation: To repatriate funds from an NRO account, NRIs need to provide documentation such as Form 15CA/15CB, which involves a certificate from a Chartered Accountant certifying that applicable taxes have been paid.

Understanding these rules helps NRIs plan their financial activities and ensure compliance with Indian regulations when transferring funds to their country of residence. It’s advisable to consult with your bank or a financial advisor to navigate the repatriation process smoothly.

A Portfolio Investment Scheme (PIS) account is a special type of account that allows Non-Resident Indians (NRIs) to invest in Indian stock markets. This scheme is regulated by the Reserve Bank of India (RBI) and enables NRIs to purchase and sell shares and convertible debentures of Indian companies on a recognized stock exchange.

Benefits of a PIS Account:

• Direct Stock Market Access: A PIS account provides NRIs with direct access to the Indian stock market, allowing them to invest in a wide range of securities.
• Regulatory Compliance: The PIS account ensures that all investments are compliant with RBI regulations, providing a structured and legal way for NRIs to invest in Indian equities.
• Repatriation of Funds: Funds from the sale of securities can be repatriated, subject to certain conditions, making it easier for NRIs to manage their investments and returns.

To open a PIS account, NRIs typically need to apply through a designated bank that offers PIS services. The bank will handle the necessary approvals and compliance with RBI guidelines. This account is particularly beneficial for NRIs looking to diversify their investment portfolio by including Indian equities.