Are gifts given to NRIs by relatives taxable? Here's what you need to know about income tax and FEMA rules
Gifts received by Non-Resident Indians (NRIs) from relatives are generally tax-exempt, while those from non-relatives become taxable if exceeding ₹50,000 in a financial year. The definition of 'relative' under the Income-tax Act includes parents, siblings, and spouses, but excludes friends and most cousins. NRIs should be aware of these distinctions to avoid costly tax missteps when accepting gifts from India.