@P--GUPTA , agreeing with the general & correct information provided by @jtax , and assuming that you are the receiving party ( US citizen ) and donor is your father ( Green Card ),
(a) for Us tax purposes this is a gift between two US persons and that the asset is located in a foreign country is immaterial.
(b) since India does have inheritance , gift and asset taxation -- there may be implication there -- should seek professional help in Inida.
(c) as mentioned by @jtax , the basis of the asset transferred ( for US purposes only ) is the basis of the donor at the time of the transaction i.e. acquisition cost of the donor LESS any depreciation allowable under US tax laws PLUS cost of any improvements allowable per US laws. Unlike India US does not index the basis .
(d) Your gain when disposing per US laws would be Sales Price reduced by allowable sales expenses ( including commission, transfer tax etc. ) LESS your basis in the asset. Obviously India would charge its own capital gains taxes which now would be eligible for foreign tax credit against the sales proceeds ( foreign income).
(e) As you can see form the above gifting is not necessarily the best choice for donee/recipient -- inheritance results in basis adjustment to fair market value on the date of demise of the decedent.
(f) Also because this transaction is between two US persons, the value of the asset so gifted would count against the donor's free estate tax limit when the donor's estate comes to probate. The donor has to file form 720 with his return to recognize the transfer of ownership.
That is my three cents worth.
Namaste ji
pk
