Gift tax exemption u/s 56(2) of i.t.act

This query is : Resolved

CA Sanjay Baheti (Querist)
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12 November 2011 Dear Members,

whether the following Gifts are exempted from Tax or not u/s 56(2) of I.T. Act as under:-

i) Son's wife (i.e.Bahu) to Son's Mother (i.e.Sas)
ii)Vice versa (i.e. from Sas to Bahu)
Please Reply.

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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12 November 2011 Sanjay sir both gifts are exempt u/s 56(2)(vii)....because they relatives according to sec 2(24) read following paragarph for defination of relative-

the followings persons will be the
lineal ascendants / descendents so far as the meaning of relative of
the Income-tax Act is concerned.
1. Spouse 2. Father 3. Mother 4. Son 5. Son’s wife
6. Son’s son 7. Son’s son’s wife 8. Great Grandson 9. Great Grandson’s wife
10. Grand Father 11. Grand Mother 12. Great Grand father 13. Great Grand
Mother 14. Brother / Sister 15. Spouse of Brother / Sister (Bhabhi / Jiyajee)
16. Spouse’s father / mother (Sas / Sasur) 17. Spouse’s brother / sister (Devar /
Jeth / Nanad/ Sala/ Sali) 18. Spouse of spouse’s brother / sister (Devarani /
Jethani / Nandoi/ Salhej / Sadhu) 19. Grand father/ mother of spouse
20. Mother’s brother / sister and their spouse (Mama / Mami/ Masi / Mausa)
21. Father’s brother / sister and their spouse (Chacha / Chachi/ Tau/ Tai/ Bhua /
Fufa)