NRI GIFTS EXEMPT FROM GIFT TAX

RETURNING NRIs CAN FREELY HOLD THEIR ASSETS ABROAD

As a part of the liberalization process, Returning NRIs have now been exempted from the earlier requirement under FERA of bringing their foreign currency assets held abroad back to India or declaring the same to RBI.
Accordingly NRIs who return to India for settlement after 18th April, 1992, after a continuos stay abroad of one year, can freely maintain and operate their foreign currency accounts with banks abroad and/or hold, transfer or dispose off their foreign currency assets such as shares, debentures or business investments etc. and i immovable properties held out of India, which were acquired them without contravention of provisions of FERA.
Moreover, they would also enjoy complete freedom for utilization of foreign currency balances and assets, as well as the income thereon including the sales proceeds thereof, for incurring any expenditure or making any fresh investments without the approval of RBI, even after their return to India.
The above benefit would also be available to NRIs who return to India prior to 18th April 1992, in respect of those currency balances and assets which had been declared to RBI and for which specific permission/license had been obtained.
In such cases, the conditions stipulated in the permission/license would no more be applicable and full freedom would be enjoyable in regard to the utilization/investment thereof.

CUSTOM DUTY CONCESSIONS ON TRANSFER OF RESIDENCE

An NRI residing abroad for minimum period of two years and transferring his residence to India for a minimum stay of one year can avail benefit under the Baggage Rules, 1994.
Under this scheme, the NRI can import his personal and household effects free of Customs Duty if such articles have been in his or his family's possession and use abroad for a minimum period of one year.
The exemption from Customs Duty is, however, not applicable in case of certain specified articles such as Fire Arms, Television, Video, Washing Machine, Cooking Range, Dish Washer, Music System, Personal Computer, Air Conditioner, Refrigerator, Deep Freeze, Micro Wave, Video Camera, Word Processor, Fax, etc. which would liable to Customs Duty at a concessional rate (currently 25%).
It should also be noted that "Personal and Household effects" for the above shall not include gold jewellery in excess of Rs. 10,000 in value in case of a male member and Rs. 20,000 value in case of a female member.
This restriction will, however, not apply to jewellery which was earlier taken out of India and is being brought back at the time of transfer of residence.
Moreover, the Customs Authorities have also been empowered to consider condonation in the period of stay mentioned herein above under certain special circumstances.