How gifts are taxed in India.
India has no separate gift tax. Instead, gifts are taxed as the income of the person receiving them, unless an exemption applies. The most important exemption is for gifts from relatives, which are tax-free whatever the amount.
| Gift | Taxable for the person receiving it? |
|---|---|
| From a relative (parents, children, siblings, spouse and others in the defined list) | No, any amount |
| On the occasion of your marriage | No |
| Under a will or inheritance | No |
| From friends or others, total up to ₹50,000 in a year | No |
| From friends or others, total above ₹50,000 in a year | Yes, the full amount |
| Property from a non-relative | Stamp duty value is taxable if above ₹50,000 |
Gifts sent from India to NRIs in the UK.
Money or property given by a resident of India to a non-resident is treated as income arising in India. So a gift from a resident friend to an NRI can be taxable in India. Gifts from relatives remain exempt.
Under FEMA, a resident individual can send money abroad as a gift to a relative under the Liberalised Remittance Scheme, within the yearly limit of USD 250,000 per person. Banks may collect TCS on larger remittances, which the sender can claim back in their own return.
A resident can also gift rupees to an NRI relative by crediting their NRO account, within the same LRS limit.
Gifts from NRIs to family in India.
NRIs can send money to relatives in India freely. The relative pays no tax if they fall in the defined list.
An NRI can gift homes and offices to a relative in India, and receive them from a relative. Farmland can be gifted only to a resident Indian citizen.
If you gift money to your spouse, income they earn on it can be added to your income. See Clubbing of Income.
Who counts as a relative.
- SpouseYour husband or wife.
- Brothers and sistersYour own and your spouse's.
- Parents' siblingsBrothers and sisters of either of your parents.
- Lineal ascendants and descendantsParents, grandparents, children and grandchildren, yours and your spouse's.
- Spouses of the aboveThe spouse of any person listed here.
- Not includedCousins, friends, nieces and nephews are not relatives for this purpose.
The UK side of a gift.
The UK does not tax the person who receives a gift. But a gift made by someone who is within UK inheritance tax can count towards their estate if they die within seven years. Since 6 April 2025, that includes long-term UK residents gifting assets anywhere in the world, including India.
Large gifts into the UK can also prompt questions from your UK bank about the source of funds. A signed gift letter and the Indian bank records answer these quickly.
How we help with gifts.
Confirm the relationship and route
Whether the gift is exempt and which FEMA route applies.
Prepare the documents
Gift letter or gift deed, bank declarations and, for property, stamp duty advice.
Support the transfer
LRS forms for the sender, and Forms 145 and 146 where needed.
Show it in the returns
Disclosed correctly in the Indian return, with notes for UK records.
Why NRIs in the UK choose us for India tax.
We work with the India side of your tax while keeping your UK Self Assessment and treaty position in view.
Every computation is checked by a second Chartered Accountant before anything is filed.
A written scope and fee before work starts, with no surprise charges later.
Encrypted document sharing and e-verification, so nothing needs a trip to India.
Returns, TDS refunds, FEMA questions and property sales handled by the same team.
Clear explanations of what you owe, why, and what to keep for next year.
Gift advice for families across the UK.
We advise families with links between India and every part of the UK on gifts of money and property, so generosity does not create tax problems for anyone.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Gifts FAQs.
Planning a gift between India and the UK?
Tell us who is giving, who is receiving and what. We will check it before anything moves.
This page is general guidance based on Indian income-tax and FEMA rules as they stand, including the Income-tax Act, 2025 that applies from 1 April 2026. It is not legal or financial advice for your situation. Rates, limits and deadlines can change, so please speak to us before acting on it.