I want to gift some money to my younger sister out of inherited property being sold by me.do I or she have to pay any taxes on account of capital gains or otherwise.pl advise

Are you a US resident? If so, the only US tax implications are that if the amount of the gift exceeds the annual gift exclusion amount of $13K, you will have to file a gift tax form. You won't actually owe any gift taxes, assuming that the total amount of gifts in excess of the annual exclusion that you've given over the years is less than the lifetime exclusion of $1M. But you would still have to file the form in order to document the gift so that it counts against the lifetime exlusion. Since you are selling the property rather than gifting the property outright, you may have capital gains issue to deal with.

If you give property (stocks, bonds, etc) instead of cash then the cost basis to your sister for any capital gains she may realize when she sells the peoperty is equal to your original cost basis.

I can not comment on any tax implications from India that your sister may have to contend with.

More details here: Publication 950 (9/2008), Introduction to Estate and Gift Taxes (http://www.irs.gov/publications/p950/index.html)