Gift tax on gift from elder brother to wife of younger bro.

This query is : Resolved

Kashyap (Querist)
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21 February 2011 Hi,
Gift (in cash, transfer through the doner's NRE account) made by elder brother (a doner) to the wife of younger brother (a donee) is taxable? pls.justify your answer.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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21 February 2011 Gift made by the elder brother to the spouse of younger brother is not taxable as it is a gift made to a relative.

Brother 's spouse is a relative as defined U/s 56(2)(vii).

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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08 March 2011 Hi,

If the Relationship between the Donor & Donee satisfies the Defination of Relative then it is not Taxable. As rightly pointed by the Above Expert -

Brother 's spouse is a relative as defined U/s 56(2)(vii). therefore not taxable

Thank you,

Regards
CA.Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

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