An NRI can gift residential and commercial property to a person resident in India or to another NRI. However, if the property is agricultural land, plantation property or farm house, it can only be gifted to an Indian citizen residing in India.
Gifts received from relatives (as defined under the Income Tax Act) are not taxable,
But when registering, one must pay the prevailing stamp duty and registration fees. Relatives include a wife, brother or sister, wife’s brother or sister, brother or sister of one of the parents, and any descendant or descendant of self or wife.
If the gift is received at the wedding or from a registered trust, it is exempt from tax.
Some NRIs are more interested in investing in Indian real estate through companies they have created on foreign soil, or they may work in a foreign company that is interested in making a footprint in India.