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The Reserve Bank of India has doubled the amount a resident in India can transfer to a person resident outside India as gift, to $50,000, a financial year.
The gift can be any security, including shares or convertible debentures.
The transferor is, however, required to obtain approval from the RBI for the gift.
“The value of security to be transferred together with any security transferred by the transferor, as gift, to any person residing outside India which was not to exceed the rupee equivalent of $25,000 during a calendar year has been enhanced to $50,000 for a financial year,” the RBI said in a notification.
In the first quarter of 2011-12, persons resident in India transferred $84.6 million by way of gift to persons resident outside India, against $57.6 million in the corresponding period last year.
The amount transferred by persons resident in India to persons resident outside India by way of gift has been steadily rising over the last few years. From just $7.4 million in 2006-07, the amount transferred has jumped to $242.5 million.
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