21 December 2010
1. Can a non Resident Indian (resident in USA)give gift to a Freind/relatve in relative who is indian resident, if yes upto which extent is it exempted from tax , and what precautions should be taken in the transactions.
1. Can a non Resident Indian (resident in USA)give Loan to a Freind/relatve in relative who is indian resident, if yes upto which extent is it exempted from tax , and what precautions should be taken in the transactionsransactions.
22 December 2010
There is no prohibition for the gift except the applicability of section 56 to such transaction.Kindly check whether the exemptions under section 56 are applicable in present case. Necessary documentation like gift deed and the capacity and intention of donor needs to be proved.
CAclubindia
