Gift

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This query is : Resolved

NIRMAL DAVE (Querist)

10 March 2018 Dear Sir/Madam,

If i received gift from my Sister's husband (who is in USA), is it taxable or taxfree?

Secondly whether gift deed is mandatory for the same or not?

Whether clubbing provision of income tax applies in such gift transaction?

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

10 March 2018 a gift received by an individual from his spouse, or from his brother or sister, or from the spouse's brother or sister, parents, or from any lineal ascendant or descendant of oneself or one's spouse would normally be fully tax-exempt. Similarly, any gifts of any amount whatsoever received from the spouses of any of these persons would also be completely exempt from income tax.
Spouse of the individual;
Brother or sister of the individual;
Brother or sister of the spouse of the individual;
Brother or sister of either of the parents of the individual;
Any lineal ascendant or descendant of the individual;
Any lineal ascendant or descendant of the spouse of the individual; and
Spouse of the person referred to in clauses (ii) to (vi).
But you receive from brother in law fit within the definition of relative A lineal descendant is a person who is in direct line to an ancestor: child, grandchild, great grandchild and so on. Similarly, a lineal ascendant could be parent, grandparent, and great-grandparent and so on. Hence gift from father, mother, brother, sister, father-in-law, mother-in-law, brother-in-law, sister-in-law, etc. will not attract any income tax.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

10 March 2018 Gift deed is required for documents during assessment of tax.

NIRMAL DAVE

NIRMAL DAVE (Querist)

11 March 2018 OK THANK YOU FOR YOUR VALUABLE REPLY.