Final answer:
Joan's taxable gift is $14,000. Option (B) is correct.
Step-by-step explanation:
The tax applies whether or not the donor intends the transfer to be a gift. The gift tax applies to the transfer by gift of any type of property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return.
It states that any gift received with or without consideration more than Rs 50,000 in a financial year will be added to your income from other sources and taxed according to your slab.
Under current tax laws, not all gifts received in India are subject to tax. However, the Income Tax Act, 1962 includes key provisions which allow you to receive various tax-exempt gifts. For instance, if you receive gifts or cash of up to Rs. 50,000 in a financial year, you do not have to pay any gift tax on it.
Joan's taxable gift can be calculated by subtracting the annual gift tax exclusion amount from the total gift amount. In 2022, the annual gift tax exclusion amount is $14,000. Since Joan made a gift of $30,000, her taxable gift would be $30,000 - $16,000 = $14,000.