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What is the US tax owed when gifting India Shares to my brother?
Here's an excerpt from the Charles Schwab website which I think will help evaluate your position: The simple answer to your question is no, the value of a gift of stock   for gift tax liability is NOT the donor's cost basis, but rather the   fair market value of the stock at the time the gift is given. So let's   say you purchased 100 shares of XYZ stock at $50 a share. Your cost   basis is $5,000. Now the stock is $80 a share and you give it as a   gift. The value of your gift for gift tax purposes is $8,000. In 2015, you can give up to $14,000 to an unlimited number of   individuals each year without paying a gift tax or even reporting the   gifts. If you give over that amount to any individual, however, you   must report the gift on your tax return, but you don't have to pay   taxes until you give away more than the current lifetime limit of   $5,430,000—for the amount above and beyond $14,000 per person per   year. So in the example above, there would be no gift tax liability.   However, if the stock happened to be $150 a share, the value of the   gift would be $15,000. You'd then have to report it and $1,000 would   be applied toward your $5,430,000 lifetime exclusion. You will need to pay a gift tax on the current value of the stock. I'm not familiar with the tax laws in India, but if your brother was in the US, he wouldn't pay taxes on that gift until he sells the stock. The recipient doesn’t have to worry about gift taxes. It's when the   recipient decides to sell the stock that the issue of valuation comes   up—for income taxes. And this is where things can get a bit more   complicated. In general, when valuing a gift of stock for capital gains tax   liability, it's the donor's cost basis and holding period that rules.   As an example, let's say you receive a gift of stock from your   grandfather. He bought it for $10 a share and it's worth $15 a share   on the day you receive it. If you then sell the stock, whether for a   gain or a loss, your cost basis will be the same as your   grandfather’s: $10 per share. Sell it at $25 and you'll pay tax (at   the short- or long-term rate, depending on how long he owned the   stock) on a gain of $15 a share; sell it at $8 and your capital loss   will be $2 a share. Ultimately, with a gift this large that also crosses international borders, you really should hire a professional who is experienced with these types of transactions. Their fees/commission will be completely offset by the savings in risk and paperwork.  http://www.schwab.com/public/schwab/nn/articles/How-Do-You-Value-a-Gift-of-Stock-It-Depends-on-Whether-You-re-the-Giver-or-the-Receiver