Sister in America is Green Card Holder, How Much Can She Gift Me Tax-Free?

Ans: There is no gift tax in India (including for an NRI) to immediate relatives (spouse, brother or sister, brother or sister of the spouse, brother or sister of either of the parents, any lineal ascendant or descendent, any lineal ascendant or descendent of the spouse, spouse of the persons mentioned above). Both the parties (i.e) the giver and the receiver need not pay any taxes on the gifts. If the gift is in the form of an investment/asset, then the tax liability will shift to the recipient of the gift.

Ans: There is no gift tax in India, but the amount received as a gift is taxed under the Income Tax Act, 1961 as "Income from Other Sources" unless exempted.

Tax Implications on Gift from Sister
Gifts from specified relatives (including a sibling) are fully exempt from tax under Section 56(2)(x) of the Income Tax Act.
Since your sister is a specified relative, the Rs. 49 lakhs gift will be tax-free in your hands.
Your sister will also not have to pay any tax on the gifted amount, as India does not have a separate gift tax.
Important Points to Ensure Tax Compliance
The transaction should be done through a bank transfer to maintain a proper record.
A gift deed is recommended (on stamp paper) to legally document the transaction.
There are no tax deductions for the giver, meaning your sister cannot claim this gift as an expense.
Final Answer
No gift tax is applicable since the amount is received from a sister.
You do not have to pay income tax on the received gift.
Your sister will also not have any tax liability on gifting the amount.
Let me know if you need more clarification!

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment