17 May 2013
The terms Blood Relationship is clearly mentioned in the Act. If the receiver of Gift is in Blood Relation with the Giver, the value is not taxable.
17 May 2013
1. There is no restriction under the Income Tax Act on gift of property by a person to his relative.
2. The only implication is the taxability of such gifts and taxability of income arising from the asset transferred.
3. As far as tax implication on gift is concerned there is NO tax implication at the time of making the gift, neither in the hands of the donor nor the donee.
4. However, tax implication will arise when income is earned from the transferred asset.
(a) Gift of property by an individual to his wife - the individual will be treated as the DEEMED OWNER of the property and the rental income shall be taxable in his hands.
(b) Gift of property by an individual to her son's wife - the rental income shall be taxable in the hands of the individual only.
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