16 February 2012
Where the gift is paid on the occassion of the marriage the same in not taxable in the hands of the receipeint i.e ur sister.. also in the hands of father and mother it shall not be added back.. however sufficient care to be taken to demonstrate that there are sufficient source for the parents to make payment of the gift..
17 February 2012
First of all giving cash gift is not taxable in the hands of the donor, provided the donor can subtantiate the source of income of suc gift.
So, there is no tax liability on the parents.
The only point for consideration is whether the gift shall be taxable in the hands of the recipient.
In this case even if the gift was not given on the occassion of the marriage, it shall still be exempt in the hands of the daughter since the gift has been received from a relative.
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