Dear Sir
I require clarification on gift tax applicability in the below mentioned cases.
1.My friend who is in the US wants to know whether he has to pay gift tax in US if he plans to give a gift deed of a property which is located in Bangalore to his younger brother.
2.Secondly he wants to know whether his younger brother who stays in Bangalore and who is in receipt of a gift deed from him has to pay gift tax.If so what is the rate of gift tax which is payable.
Thanks for the update.
The views posted by Mr Hitesh is valid in India as per prevailing rules.
Dear Anil,
Thanks. i would like to seek further clarifications on the below points :
1. Please let me know under which Section number of the Income tax Act-which mentions that the gift is exempted from tax for my reference.
2.In the above case has the Donor who resides in U.S.A , being the donor of the gift deed please let me know whether he has to pay gift tax to income tax office in India.
read whole Section 56(2) generally, clause vii and fourth proviso to clause vii of this section specially.
read whole Section 56(2) generally, clause vii and fourth proviso to clause vii of this section specially.
agree with above
Please refer this article which contains both Indian & US tax laws
https://articles.economictimes.indiatimes.com/2012-11-29/news/35433130_1_gift-tax-value-of-such-property-raju-maniar-cpa
Thanks for the inputs.
Thanks for the feedback.
CAclubindia
