17 September 2016
Relatives u/s 56(2)(vii) from whom Gift is permissible under Income Tax Act, 1961 (i) spouse of the individual; (ii) brother or sister of the individual; (iii) brother or sister of the spouse of the individual; (iv) brother or sister of either of the parents of the individual; (v) any lineal ascendant or descendant of the individual; (vi) any lineal ascendant or descendant of the spouse of the individual; (vii) spouse of the person referred to in clauses (ii) to (vi) Mother in Laws is covered under relative as per above definition so gift received is exempt from tax. Thanks.
19 September 2016
The income from gifted money is taxed in the hands of Mother only, No clubbing provisions will be applicable for gift given to parents and if they earned money from the same by investing it. Thanks.
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