Abstract

Gratuitous transfers had played a significant role in the Indian societies since time immemorial. Varied legal systems of the world recognize the concept of gift as a mode of transfer. In all the legal systems of the world, gift is considered as a gratuitous transaction which does not require any legally enforceable obligations. Gift is not be confused with Barter system which prevailed in earlier societies, as it involved the exchange of goods and services in lieu with other goods and services, mainly at the time of monetary crisis. Under all these systems four basic elements are required for the valid disposition of gift, which are gratuitousness, subjective elements, inter vivos transfer and the gift object. Foreign gifts are generally seen as prestigious or valuable, reflecting the global connections of the recipient. Foreign gifts particularly in the form of cash or high value goods can impact local economies. They may lead to increased spending in certain sectors, such as luxury goods or real estate. Ensuring compliance with tax regulations is essential for proper functioning of the economy. Gifts can potentially contribute to the black money problem in India through misuse and regulatory loopholes. This paper is a humble attempt to analyze the legal, cultural and economic aspects of gift giving by foreigners in India; to understand the implications of foreign gifts on taxation and compliance; to access the social perceptions and practices surrounding foreign gifts in Indian society and to explore the regulatory framework governing gifts and its effectiveness.

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