20 June 2008
Mrs X transfers a sum of Rs 8 lakh to her daughter-in-law without any consideration and this sum is given on loan by daughter-in-law to a third party, whether Mrs X or her dauhter-in-law chargeable to tax? IF yes , then by what amount? Can it be treated as gift from relative and so no tax liability ?
20 June 2008
Mrs X can Tr. in what capicity. if it is gift then it is not taxable because it is covered under the defination of relative u/s 57 . and if it is loan to her daughter- in-law then alos no question of taxability. but loan is with interest then intt. must be taxable income.
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