22 October 2008
Dear all, I am remitting an amount of Rs.300,000 to my sister in law in Ireland and quoting the reason as Gift. Is there any liability by me or her as per income tax act. or gift tax act? if so what is the amount?
22 October 2008
Gift to sister-in-law is a tax free income in the latter's hands u/s 56 of The Income Tax Act, 1961.
In my opinion, the registration charges are the only charges which is to be paid for the transaction in the nature of Gift since Gift Tax Act is abolished.
As regards the remittance of Rs 300,000/- by way of Gift to NRI, relevant provisions of The FEMA Act are also to be observed
23 October 2008
No need to register, just a letter of gift is sufficient. It is better that the letter is acknowledged for the benefit of the donor's records.
As my sister-in-law lives abroad (even if she were to be some one else i mean if not a relative) how can it be taxed as per indian Income Tax Act? Actually I am sending Rs.12 lacs in 4 transactions to her this week from my personal account with a multi national bank? Is there any implication on me for these transactions?
CAclubindia
