Gift of Shares from Non-resident to Resident

[Vikash Mehta]

Is it required to file form FC-TRS with RBI in case of Gift of Shares from Non-resident to Resident?

Reference (for information):

• As per regulation 9 of the Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations, 2000 - RBI approval is not required.
  
• The Form FC-TRS is generally required to be submitted to the AD Category – I bank, within 60 days from the date of receipt of the amount of consideration.
  
• In case of Gift, there is no receipt of consideration.

http://www.rbi.org.in/scripts/BS_ViewMasterCirculars.aspx?Id=7355&Mode=0

Thanks in advance!

Vikash

[sid]

Not required but it will be handy if you keep a declaration form the NRI that he has transferred the shares as gift and no consideration in cash or kind has been taken from resident transferee.