Chartered Accountant
2731 Points
Posted on 14 February 2010
Under the Gift Tax Act, 1958, gift tax was payable by the donor upto 30th September, 1998. The Gift Tax Act has been repealed with effect from 1st October, 1998 and therefore the Gift Tax is not chargeable for the gifts made on or after 1st October, 1998.........
Under the income tax perspective, u said the entire amt. is given on loans. Now that, a bit of details are needed, as to whether, the amt. given bears interest anything arond less then the market or without intertest at all........ In this case, income tax provisions shall apply.!!!!!!!!!!!!!