In the past one could send monetary gift to any blood relative, without worrying that the receipients will also have to pay taxes( the donor has already paid taxes on this amount in a foreign country).The new law puts restrictions on the term"relative".Now people are reluctant to send money, It is a net loss to the country, as the country loses valuable foreign exchange and net money inflow in the country (No product or services go out of the country).The law should be changed, so that one can send money to any blood relative(without worrying that the receipients will also have to pay unnecessary taxes). I hope the finance minister reconsiders and changes the definition of relative to any blood relative.
RE:Gifts to blood relatives and gift taxes
by Amitabh on Apr 24, 2007 01:33 PM Permalink
Not only that.The most ridiculous part is that a situation may arise that A is a relative of B and can give gift of any amount to B which will not be taxed in B's hands but B may not be a relative of A and so A will not get the benefit of exemption if he receives gift from B.Is this not strange ?
RE:Gifts to blood relatives and gift taxes
by Ahmed Ali on Apr 24, 2007 10:56 PM Permalink
Thanks for your reply and observation.If only the finance minister reads and acts on it.
