Gift of demat stock by nri to resident in-laws

Sunil (Querist) 13 February 2014 This query is : Resolved
Is there any RBI permission needed for gifting dematted stock held by an NRI to his/her in-laws who reside in India? If so, what is the process? Any specific forms need to be filled? Are there any stamp duty or any other fees involved? Kindly advise.

-SK.

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Vidhi Joshi (Expert) 13 February 2014
you need to file FC TRS as laid down under RBI guidelines.

R.V.RAO (Expert) 13 February 2014
yes you can gift your demat shares to your resident relatives in india.the procedure is off market trades,since it is not routed through stock market.
pl. contact your depository participant(DP), who is maintaining your demat account.As per RBI guidelines, give your request in writing and submit form FCTRS.
you being NRI gift tax exemptions not applicable and such gift is liable for gift tax.