Law-Tasveer

NRI status mandatory for gift tax benefit

The Income Tax Appellate Tribunal stated that gift tax exemptions are not applicable to NRIs who lose their special status by overstaying in India beyond the allocated 182 days during the year.

A case of gift tax in Kanpur held a person who stayed in India over 182 days and could not claim exemption from the tax, as the Gift Tax Act stipulates that an NRI is exempted from tax if he gives the gift from his NRE Account however dismissed his submissions that his resident or non resident status at the time of giving the gift was that of an NRI as he had overstayed over the 182 days and ceased to be an NRI therefore was ineligible to claim the exemption.