What is a Donor's Tax?

Donor’s or Gift Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer. It shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect and whether the property is real or personal, tangible or intangible.

Donor’s or Gift Tax- is tax imposed on the privilege of transmitting property by and from a living person to another by way of donation.