Gift made to a Non-Resident will be taxable in India w.e.f 5^th July 2019

What is the amendment	Gift received by a Non- Resident (Individual/HUF/Co./LLP etc.) from a Resident (Individual/HUF/Co./LLP etc.) will be treated as Income deemed to accrue or arise in India, hence Taxable in the Hands of Non- Resident. [Source: newly proposed Section 9(1)(viii)]
What is Reason for amendment	Under the existing provisions of the Act, a gift of money or property is taxed in the hands of donee, except for certain exemptions provided in clause (x) of sub-section (2) of section 56. It has been reported that gifts are made by persons being residents in India to persons outside India and are claimed to be non-taxable in India as the income does not accrue or arise in India. [ Source Memorandum to Finance Bill (2) 2019]
Effective date of Amendment	With effect from 5th July, 2019 [ i.e. on or after 5th July, 2019]                           [ Source Memorandum to Finance Bill (2) 2019]
What constitutes Gift?	-       any sum of money, without consideration > 50K or -       any immovable property without consideration and Stamp Value of which >50K or -       any immovable property for a consideration and stamp Value of such immovable property is higher by either >50K or 5% of consideration than the actual consideration paid. or -       any property, other than immovable property without consideration whose aggregate fair market value > 50K or -       any property, other than immovable property for a consideration less than the aggregate fair market value of the property by an amount >50K [Section 56(2)(x)]
Exception	-       Gift from Relative of Individual/ HUF -       Gift on the occasion of the marriage of the individual etc. Will not be taxable in the hands of Non- Resident.   [Source Proviso to s. 56(2)(x) read with proviso to s.56(2)(vii)]                           [ Source Memorandum to Finance Bill (2) 2019]
Will DTAA be applicable?	Yes, in a treaty situation, the relevant article of applicable DTAA shall continue to apply for such gifts as well.     [ Source Memorandum to Finance Bill (2) 2019]