Gift received by a Canadian resident from Indian resident is taxable in India in the hands of the recipient unless received from relatives.
In India, one of the most common modes of transfer of property and money is by way of a gift. A gift can be a transfer of movable or immovable property or transfer of money from the giver to the recipient.
Gifting is often used to transfer property or money within the family or to relatives by way of will or inheritance. However, gift has also been used as a medium to evade taxes due to which the government had introduced the Gift Tax Act, 1958 (GTA) to curb tax evasion activities.
GTA was later repealed and the incidence of tax was comprehensively incorporated in the Income-tax Act, 1961 (ITA) to ensure that bogus transactions are not carried out with the sole objective of tax avoidance.