19 April 2012
During the year 09-10 my client has received on 12-01-2010 an amount Rs 6.00 lakhs from his father-in-law as a gift and purchased a property of vacant land on 21-01-2010 in the joint name with his wife. Can he receive this amount as a gift from his father-in-law!
19 April 2012
Under Section 56(2) Income tax Act, if a sum of money exceeding Rs 50000 is received without consideration by an individual or a Hindu Undivided Family (HUF) then the entire amount is taxed under the head income from other sources.
However under specific times or from the specific relatives and other specific cases these provisions are not applicable i.e nothing is taxable with out any limit.
In your case, your client has received the gift from father in law( Any lineal ascendant or descendant of your spouse) covered under relative definition.
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