31 March 2009
If gift is given to a "relative" as defined by Sec 56 of Indian IT law, then there are no India tax consequences.
Parents, children, spouse, grand parents, grand children, uncles and aunts (i.e. brother or sister of parents) and their spouses are "relatives" per Sec 56 and gifts to such people will not attract India tax.
31 March 2009
IS SHALL NOT BE CONSIDERED ANY EXPENSE OR DEDUCTION IN THE HANDS OF PAYER, HOWEVER GIFT FROM RELATIVE IS NOT TAXABLE IN THE HANDS OF PAYEE( OR RECEIVER )
CAclubindia
