Liability to gift-tax--Remittances made by non-resident donors to residents in India

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....n India. The Board have had occasion to consider the question of taxability or otherwise of gifts by way of remittance of foreign currency or other foreign exchange made by non-residents in India. 2. The question has to be decided in the light of section 5(1)(ii)(a) of the Gift-tax Act which reads: "5. (1) Gift-tax shall not be charged under this Act in respect of gifts made by any person-- (i....

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....delivered to the donee in India, that is, where the cheque or draft is sent by the donor to the donee in India on his own by post or otherwise, the gift undoubtedly, would attract liability to gift-tax. This is because in such a case the Post Office or the agency through which the gift is sent acts as an agent of the donor and the subject-matter of the gift will be property situated in India. 5. ....