LOOSE OF GIFT TAX EXEMPTION BY NRI

NRIs should make their trips to the homeland shorter if they want to avail themselves of the gift tax exemptions, says a recent ruling by a tax tribunal. The gift tax exemptions will not be available to an NRI if he loses his special status on account of overstaying in India, the Income Tax Appellate Tribunal (ITAT) said. Giving a ruling in a case involving levy of tax on a gift made by an NRI from his non-resident (external) (NRE) account, the tribunal said, "He was in India for 182 days or more during the relevant previous year.... Thus, the assessee is clearly not entitled to exemption (on gift tax)."
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