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Gift of money made by resident Indians to non-residents who are relatives as per the income-tax law, continue to be exempt, under specified conditions.
Amid the policy initiatives and tax proposals aimed at strengthening the Indian economy, the Union budget 2019 has plugged a loophole by proposing to tax gifts received by non-residents from resident Indians. The move, intended to widen and deepen the tax base, needs to be carefully understood and examined for any future gifts to be made by resident Indians. The provision was further amended when the same was passed by the Lower House (Lok Sabha) of the Indian Parliament.
Vikas Vasal
Partner, Grant Thornton India LLP
This article appeared in Live Mint on 01st Aug, 2019.
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