Sending money from the US-
Since 2013, US citizens sending money overseas are supposed to pay the tax on the entire amount, if it exceeds $14,000 per person, in a year. In case you are married, even your spouse can participate in sending money as a gift. So, you can potentially send $28,000. The tax would be applicable on the entire amount and not the amount that it exceeds. The person who is gifting has to pay the tax.
You can also divide the amount and send it to number of people to avoid taxation. Say you sent $40,000 to 4 different person, you have given a $10,000 to each, and as per the law, its under $14,000 per year. You are not liable to pay tax on the amount now as the number is below $14,000.
Receiving money in India -
As per current tax laws, if an individual receives cash or non-cash gifts from persons other than blood relatives* in excess of Rs. 50,000 in a year, the whole of such gift received will be treated as the individual's income.
*A close or blood relative would include any of the following:
Note: The information presented here is generic and may not be accurate. Please consult your CPA, tax expert or tax attorney for specific tax advice and inquiries.Visit IRS Website for US tax information.