Hi,
A relative would like to send me about $40-50K in 4-5 installments from Hong Kong. I am the States. Will I incur any taxes on this money? Additionally do I have to report this money on my tax return? Also, once I receive this money I will be wiring it to my sister in India as a gift. Are there any tax related concerns with this type of transaction? Looking forward to your response?

You do not pay US taxes on any gift you receive, nor report it on your tax return. However, if you make a gift to your sister in excess of the annual gift exclusion (which is $13.K), you must report the gift on a gift tax return, IRS form 709. No taxes will be due, but you must report it.

It would be less hassle for you if your relative in HK would just make a gift directly to your sister, rather than passing the money through you.