Relatives for giving gift in terms of money.

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Nitin Kulthe (Querist)
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24 December 2013 1)Does sister & daughter-in-law falls under the definition of Relative for giving Gifts under Gift Tax act provisions?

2)How much money can I give to my sister or daughter-in-law in a financial year? Is there any upper limit for giving gifts in terms of money?

3)To whom should I gift the money for exemption under Gift Tax Act?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 December 2013 1. Sister and daughter-in-law are relatives for the purpose of Section 56(2)(vii).

2. There is no limit on gifts to relatives. Just make sure that you can substantiate the source of the gifts.

3. Gift Tax has been abolished and is no longer applicable.