Provisions Relating to Gift under FEMA

Type of gift	From NRI to NRI	From Resident to NRI	From NRI to Resident	From Resident to Resident
Foreign currency	–	LRS limits of USD 250,000 per FY would apply to the donor.	(i) Under Rupee Drawing Agreement method, no limit on personal inward remittances (business capped at INR 15 lakhs for each remittance). (ii) Under Money Transfer Service Scheme, max $2,500 per transfer, max 30 transfers per FY. Only cross-border personal remittances, such as family maintenance and remittances favouring foreign tourists visiting India allowed. NRIs can gift cash, but residents cannot hold more than $2,000 (or equivalent) at any time.	Not allowed
Indian currency	Not allowed	Permitted from relatives only.	Allowed.	–
Indian investments	(i) From NRI holding on repatriable basis to NRI on repatriable basis: RBI approval if in restricted sector. (ii) From NRI holding on non-repatriable basis to NRI on repatriable basis: RBI approval + conditions: Gift ≤ 5% of paid-up capital / debentures / mutual funds. Sectoral cap not breached. Donor & donee should be relatives. Total value including earlier transfers ≤ USD 50,000 in a FY. (iii) From NRI holding on non-repatriable basis to another NRI on non-repatriable basis: treated as transfer to resident.	Donor must obtain RBI approval + conditions: Gift ≤ 5% of paid-up capital / each series of debentures / each mutual fund scheme. Applicable sectoral cap not breached. Donor and donee must be relatives. Total value including earlier transfers ≤ USD 50,000 in a FY.	Form FC-TRS filing required if NRI transfers shares on repatriable basis.	–
Overseas Investments	–	Not allowed	Allowed.	To relative: allowed. To non-relative: RBI approval needed.