However, there are some exemptions to the tax on gifts:

- Any gift received from a blood relative is exempt even beyond the limit of 50,000.Indian laws define blood relatives as:

• Spouse of the individual.
• Brother or sister of the individual or of the spouse of the individual.
• Brother or sister of the either of the parents of the individual.
• Any lineal ascendant or descendant of the individual.
• Any lineal ascendant or descendant of the spouse of the individual.
• Spouse of the persons referred in second to fifth categories.

- Gifts received on occasion of marriage are also exempt beyond the limit of 50,000

- Gifts received under Will or inheritances are exempt beyond the limit of 50,000

In a nutshell, as an NRI, if you make gifts to people in India, the onus of paying tax in India would be on the recipients. Recipients in India who are 'relatives' would not have to pay any tax while non-relatives would have to pay tax on gifts in excess of 50,000.

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