Gift Tax on monetary gift from NRI cousin

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  1. Magdha

    Magdha New Member

    My first cousin,my father's real sister's son, an NRI, wants to gift me some money.The amount would be greater than INR 50,000. Will I be charged gift tax ? If yes at what rate will I be taxed?
     
  2. Karan Batra

    Karan Batra Well-Known Member

    Dear @Magdha

    The amount received as Gift would be taxable as per theIncome Tax Slabs.

    However, there is a way to avoid this Gift Tax as well:-

    1. Your cousin gifts the money to his mother.
    2. Then his mother gifts the money to her brother (i.e. your father)
    3. And then your father gifts the money to you

    In the above mentioned chain of transactions, no tax would be levied as they all are in direct blood relation. If the amount is directly gifted to you, there won't be any direct blood relation.
     
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