Directors participating via video conferencing are required to have their attendance recorded in the attendance register, but they need not physically sign the register at the meeting. Instead, the process can be adapted as follows:

1. Electronic or Digital Signature:
   Since electronic signatures are legally recognized under the IT Act, directors can affix their digital signatures on an electronic attendance register. This ensures that their participation is authenticated without needing physical presence.

2. Post-Meeting Physical Signature:
   Alternatively, the company may circulate the attendance register after the meeting, allowing remote directors to print, sign, and return a scanned copy for record-keeping. This method also serves to authenticate their attendance.

3. Recording Details in Minutes:
   Regardless of the method used, the minutes of the meeting should clearly state the names of the directors who participated via video conferencing, along with the time of joining and leaving the meeting.

4. Compliance with Companies Act and Rules:
   The Companies Act, 2013 and the Companies (Meetings of Board) Rules, 2014 do not prescribe a specific format for signing the attendance register in the case of video conferencing. The key requirement is that a reliable and verifiable record of attendance is maintained.

There isn’t a specific “list” of business items that are inherently restricted from being transacted via video conferencing in Indian law. Instead, whether a particular transaction can be fully conducted through video conferencing depends on the nature of the transaction and any statutory or regulatory requirements that may mandate physical presence or original documentation. Here’s a breakdown:

1. General Acceptance of Video Conferencing

• Modern Legal Framework:
  Under the Information Technology Act, 2000, electronic records and digital signatures are legally recognized. This means that many business transactions—such as board meetings, contract negotiations, and even resolutions—can be effectively conducted via video conferencing if the necessary electronic safeguards (like digital signatures) are in place.

• Corporate Meetings:
  The Companies Act, 2013 permits board and general meetings to be held by video conferencing or other audio-visual means, provided that the mode of participation is clearly defined and the quorum requirements are met.

2. Situations Where Physical Interaction May Still Be Required

While video conferencing is widely accepted, certain transactions or business items may not be fully completed remotely due to statutory or practical requirements, for example:

• Original Documentation & Notarization:
  Transactions that require the submission of original documents (such as certain notarized agreements or deeds) may not be completely transacted via video conferencing.

• Physical Verification:
  Transactions that necessitate on-site inspection (for example, the physical inspection of goods in a property transfer or manufacturing process) might require a physical presence.

• Regulatory Requirements:
  Specific sectors (like certain banking or real estate transactions) may have guidelines or regulations that mandate physical verification or in-person interaction, despite the general acceptance of digital processes.

3. Practical Considerations

• Digital Signatures & Electronic Records:
  With the advent of digital signatures and secure electronic record systems, many formalities once tied to physical presence have been relaxed.

• Sector-Specific Norms:
  Different regulatory bodies may impose their own requirements. For example, while corporate board meetings are fully acceptable over video conferencing, some government or regulatory approvals might still require a physical submission of documents or signatures.

4. Conclusion

There is no blanket restriction in Indian law that categorically excludes any “business item” from being transacted via video conferencing. Instead, the acceptability of using video conferencing depends on:

• The statutory framework (e.g., Companies Act, 2013 and Information Technology Act, 2000),

• Regulatory requirements of the specific sector, and

• Practical necessities such as the need for original documentation or physical verification.

In essence, if the transaction can be legally supported by electronic records and digital processes, video conferencing is generally acceptable. However, where the law mandates physical presence or original documents (for instance, certain notarizations or inspections), those specific items would still need to be handled in person.

In India, monetary gifts received by an individual or a Hindu Undivided Family (HUF) are generally taxable under Section 56(2)(x) of the Income Tax Act, 1961. However, there are certain exceptions where such gifts are not taxable. Let’s go through these exemptions in detail.

Exemptions from Tax on Monetary Gifts

Monetary gifts received by an individual or HUF are not taxable in the following cases:

1. Gifts from Specified Relatives (Fully Exempt)

As per Section 56(2)(x) of the Income Tax Act, gifts received from specified relatives are completely exempt from tax, regardless of the amount. The list of relatives includes:

• For an Individual:

  • Spouse

  • Brother or Sister (of the individual or spouse)

  • Brother or Sister of either of the parents

  • Any lineal ascendant or descendant (of the individual or spouse)

  • Spouse of the above-mentioned relatives

• For an HUF:

  • Any member of the HUF (gifts received from members are not taxable)

2. Gifts Received on Marriage (Fully Exempt)

Under Section 56(2)(x), any amount received as a gift on the occasion of marriage is completely exempt from tax. There is no upper limit for this exemption.

3. Gifts Under a Will or by Inheritance (Fully Exempt)

Any money received:

• Under a will

• By way of inheritance

• In contemplation of the death of the payer

is not taxable under Section 56(2)(x).

4. Gifts from a Registered Trust or Institution (Exempt under Certain Conditions)

If an individual or HUF receives a gift from:

• A registered charitable or religious trust (covered under Section 12A or 12AA of the Income Tax Act)

• A trust created solely for the benefit of relatives of the donor

Then such gifts are not taxable, subject to conditions.

5. Gifts from Local Authorities

Any amount received from a local authority (as defined under Section 10(20) of the Income Tax Act) is fully exempt.

6. Gifts from Recognized Funds and Institutions

Money received from:

• Educational institutions

• Medical institutions

• Recognized funds such as the Employees’ Provident Fund (EPF), Public Provident Fund (PPF), and others

is not considered taxable income.

7. Gifts Received Due to Sudden Death of a Relative (Ex-Gratia Payment)

If an individual receives an ex-gratia amount due to the death of a close relative, such an amount is not considered taxable income under the principles of personal bereavement.

Under the provisions of Section 56(2)(vii) of the Income Tax Act, 1961, gifts received by an individual or a Hindu Undivided Family (HUF) are exempt from tax if they are received from a “relative.” The Act defines “relative” for this purpose as follows:

“For the purposes of this clause, ‘relative’ shall mean—
(a) the spouse of the individual;
(b) the brother or sister of the individual;
(c) the brother or sister of the spouse of the individual;
(d) any lineal ascendant or descendant of the individual; and
(e) the spouse of any such person.”

Explanation in Simple Terms:

• Spouse: Your husband or wife is always considered a relative.

• Lineal Relatives:

  • Ascendants: Your parents, grandparents, etc.

  • Descendants: Your children, grandchildren, etc.

• Siblings:

  • Your own brothers and sisters are included.

  • Additionally, the brothers and sisters of your spouse are also regarded as relatives.

• Spouses of Relatives:

  • The spouse of your lineal ascendants or descendants, as well as the spouse of your siblings or the spouse’s siblings, are also treated as relatives.

If you receive gifts (movable property or money) from non-relatives and the total value during the year exceeds ₹50,000, the whole amount is charged to tax under the head “Income from Other Sources.”

This provision prevents individuals from circumventing tax by receiving multiple gifts just under the threshold from non-relatives.

Please refer to seection 56(2)(x) of the Income Tax Act, 1961):

“Any sum of money or property (other than immovable property) received without consideration by an individual or Hindu Undivided Family (HUF) in excess of ₹50,000 in aggregate during a financial year shall be taxable as income from other sources.”