Gift of money

This query is : Resolved

P.C. Joshi (Querist)
Follow

27 September 2016 Dear Friends,

Can anyone please share their expertise with the following query:

Ms A wanted to make a gift of Rs 8 lacs to her sister Ms B for some exigency faced by B. On the date of transfer A did not have suffcient money in her account. hence, the funds were transferred by A's husband C to B's account.

Can it be treated a valid gift made by A to B.
Or the gift deed can be made showing a gift by C to B.

What will be the tax liability of above trasaction to A, B and C.

An early response by anyone will be highly appreciated.

Thanks

P.C. Joshi

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
Follow

27 September 2016 Sister's Husband is covered under the term "Relative" hence, any gift received from them by other sister is exempt in income tax act so you can show the gift given by C to B and it is not taxable and you can made the gift deed for the same.
Thanks.

P.C. Joshi

P.C. Joshi (Querist)
Follow

27 September 2016 Thanks for replying.

Upgrade to CAclubindia Pro. Subscribe Now!