The recepient has to pay tax on the gift received(with certain exceptions).It may be alright if both doner and receipient are in India, that way only one person pays the tax(as this is not deductible for the donor). What if the donor is in a foreign country(U.S.), this is not deductible for the donor, so thaey have to pay tax. Is it still taxable for the receipient in India? as one party has already paid tax on this amount. Otherwise it amounts to double taxation, it is not fair.
