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

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..... y non-resident donors to residents in 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 re .....

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..... ch foreign currency or foreign exchange is 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 gi .....

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..... Supreme Court quoted as under: "If the cheque is sent by post, the receipt would be at the place where the cheque is posted provided the mode of sending it by post is adopted at the express or implied request of the addressee, in such cases the post office being the agent of the addressee; otherwise the receipt would be at the place where the cheque is delivered by the post office to the addres .....

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