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4.2 FEMA FAQs - Gift of Shares of Indian Company between

Residents and Non-residents (continued)

4. What are the reporting requirements in case of gift of shares of Indian company?

Incase reporting is applicable to the transaction of gift of shares, Form FC-TRS must be filed online on the FIRMS
portal with the specified documentation within 60 days of the said transaction. The onus of reporting is on the
transferor or transferee resident in India or the person resident outside India holding shares on non-repatriable
basis, as the case may be.

CONCLUSION
To conclude, if one feels there is an ambiguity in interpreting the law in a particular case, one can surely seek RBI’s
approval before entering into the transaction as non-compliance could lead to adverse consequences. One should
also be mindful of taxability of such gifts in India as well as foreign country.

GLOSSARY

FCRA Foreign (Contribution) Regulation Act, 2010
LRS Liberalised Remittance Scheme

RBI Reserve Bank of India

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UA E TAX U PDAT E NEWSLET TER ISSUE 03 - June 2024