Section 9(1)(viii) – Gift of Money to Non-Residents
# Section 9(1)(viii) – Sum of Money Paid to a Non-Resident
## The rule
Where a sum of money is paid by a resident person in India to:
a non-corporate non-resident, or
a foreign company, or
a Resident but Not Ordinarily Resident (RNOR),
and the aggregate exceeds ₹50,000 and is chargeable under Section 56(2)(x) (income from other sources — gifts), it is deemed to accrue or arise in India.
## Important carve-out
This clause does NOT apply to property (movable or immovable) transferred outside India without consideration or for inadequate consideration to such persons. It is limited to sums of money.
## At a glance
Element
Requirement
Payer
Resident in India
Recipient
Non-corporate NR / Foreign company / RNOR
Nature
Sum of money
Threshold
Aggregate > ₹50,000
Chargeability link
Section 56(2)(x)
Excluded
Property transferred outside India
Worked example
### Example 1
Money gift abroad: A resident individual gifts ₹3,00,000 to his non-resident friend's overseas bank account without consideration. Since the sum exceeds ₹50,000 and is chargeable under Section 56(2)(x), it is deemed to accrue in India under Section 9(1)(viii).
### Example 2
Property abroad: The same resident transfers a flat located in Dubai to the non-resident for no consideration. This is excluded from Section 9(1)(viii) because it is property transferred outside India, not a sum of money.
⚠️ Common exam mistakes
Extending the clause to immovable/movable property transferred outside India — only sums of money are covered.
Forgetting the ₹50,000 aggregate threshold and the link to Section 56(2)(x).
Missing that the recipient must be a non-corporate NR, foreign company, or RNOR (not an ordinarily resident).
Bare-Act text Section 9(1)(viii) · Income-tax Act, 1961 · click to expand
Section 9(1)(viii): income arising outside India, being any sum of money referred to in sub-clause (xviii) of clause (24) of section 2, paid on or after the 5th day of July, 2019 by a person resident in India to a non-resident, not being a company, or to a foreign company.