Facts:

• Mr. A, a resident Indian, owns a residential property in Virginia, USA.
• The property was originally purchased in 2018 through funds remitted under the Liberalised Remittance Scheme (LRS).
• Mr. A wishes to gift this property to his daughter Ms. C, who is also a resident Indian.

What does the law say?

• Rule 21(2)(i) of the Foreign Exchange Management (Overseas Investment) Rules, 2022 permits: A person resident in India may acquire immovable property outside India by way of inheritance or gift or purchase from a person resident in India who has acquired such property as per the foreign exchange provisions in force at the time of acquisition.
• Since Mr. A acquired the property legally under the LRS at that time, and both are residents in India, the gift transaction is allowed.

Conclusion:

• Ms. C, a resident Indian, can legally accept the immovable property as a gift from her father Mr. A, who is also resident in India.
• The gift is compliant with FEMA rules because:
  • The property was originally acquired in accordance with the foreign exchange regulations at the time.
  • Both donor and donee are resident Indians.

Ms. C can proceed with the gift transaction without regulatory issues under FEMA.

If you want, I can help with the procedural steps or documentation needed for this gift transfer.