Can an Indian expatriate transfer US assets to a stranger in India?
Can an Indian expatriate (who become a US citizen several years back) give away a real estate and/or business (located in USA) to anyone in India? Can the recipient be a stranger? If yes, what is the specific procedure, in view of FEMA/FCRA, to give away some such foreign asset?
A US-based individual (including naturalized US citizens of Indian origin) can freely gift their American property or business assets to any Indian resident without FEMA/FCRA restrictions, provided the gift is genuinely voluntary without any consideration. However, the Indian recipient must declare such foreign gifts exceeding ₹50,000 in their tax returns under Schedule FA and should seek professional tax guidance to understand implications in both jurisdictions.
In the Indian legal context, a US citizen (including former Indian nationals) can gift property or business assets located in the US to Indian residents, including strangers, as there are no FEMA/FCRA restrictions on Indians receiving gifts from non-residents of any value or nature as long as the gift is voluntary and without consideration. The recipient must report such gifts in their Indian income tax return under Schedule FA (Foreign Assets) if the value exceeds ₹50,000, and should consult a tax advisor regarding potential tax implications in both countries.
Sir, an Indian expatriate (U.S. citizen) can transfer real estate/business assets to someone in India, including a stranger, but must comply with U.S. gift tax laws and file necessary forms. It is advised to consult an expert lawyer who will assist you with the best course of action. For further legal assistance contact us on our helpline number.
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