Gift tax

This query is : Resolved

TRIBHUVAN PUROHIT (Querist)
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17 February 2016 Sir,
Please inform whether gift given by son who is living abroad to her mother is taxable because in definitions of gift it shows brother, sister spouse etc but nowhere shows tax free concept for gifts by children to parents.

Also Gift by father in law of an individual to her grand daguther ( daughter of her daughter) is taxable or not

Awaiting reply

Regards

Tribhuvan

Kaustuv

Kaustuv (Expert)
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17 February 2016 Hello,

Please note definition of relative also includes Any lineal ascendant or descendant of the individual. So gift from son to mother would not be taxable.

I tend to think that grand father ( mother's father) would not be lineal ascendant hence may not be covered under the definition of relative and any such gift would be taxable. I solicit other views on this please.

Regards,
CA. Kaustuv

Prudhvi Raj

Prudhvi Raj (Expert)
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17 February 2016 Hi

Gift received from son by mother is exempt from tax as it covered under relative definition(Any lineal ascendant or descendent of the individual)

Gift received by individual from father in law is also covered under relative definition(f. Any lineal ascendant or descendent of the spouse of the individual).

But gift received from grand father(Mother father) would not fall in any above two categories.so i think it is chargeable to tax.

Regards,
CA.Prudhvi

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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17 February 2016 Children can gift to their parents and similarly can also receive gifts from their parents. As far as gift from nana nani is concerned there is no confirmed view. Most of the views are against. Therefore I also reckon that gift from nana nani is taxable if it exceeds Rs. 50000/-.