In plain words: received money or property from a relative abroad, or inherited foreign assets? FEMA generally allows it — but there are rules on how much, from whom, and what you must keep.
Receiving gifts from abroad
A resident can receive foreign-currency gifts from relatives or others abroad, credited to a bank account. Within the rules, inward gifts are generally permitted; the giver abroad must comply with their own country's and (if a resident Indian giving under LRS) India's limits.
- Gifts are usually received into a normal resident account (or NRO, for an NRI recipient).
- Keep proof of the relationship and the gift for tax and FEMA purposes.
- Watch the income-tax angle — gifts from non-relatives above a threshold can be taxable (separate from FEMA).
Inheriting foreign assets
A resident who inherits assets abroad — from a relative who was a non-resident, or assets acquired when the person was a non-resident — can generally hold and own them, subject to the rules. Inheritance is treated more liberally than fresh acquisition.
- You may continue to hold lawfully inherited foreign property or accounts.
- Declare foreign assets as required under tax law — non-disclosure invites the Black Money Act.
Inheriting Indian assets as an NRI
An NRI can inherit property and assets in India from a resident, and later sell and repatriate within the applicable limits (for example, the NRO USD 1 million route).
The golden rule: document and declare
Whether a gift or an inheritance, keep clear documentation of the source and your right to it, and declare foreign assets where the law requires. That protects you under both FEMA and the tax laws.
Frequently asked questions
Can I keep foreign property I inherited? Generally yes — lawfully inherited foreign assets can be held, subject to disclosure.
Is a foreign gift taxable? FEMA may allow it, but income-tax rules on gifts apply separately.
Must I declare foreign assets? Yes — under tax law; non-disclosure is serious.
How Vakil Help Desk helps
Vakil Help Desk advises on FEMA compliance, remittances, NRI matters, foreign investment and compounding — and represents clients in ED FEMA proceedings. If you have a cross-border transaction or a FEMA notice, we can help you get it right.
This article is for general legal awareness, not individual legal advice. FEMA rules, limits and forms are revised by the RBI and the Government from time to time, and the right treatment depends on your facts and the current position. Please consult a professional before acting on a cross-border transaction.