Gift to daughter of sister

This query is : Resolved

deepika dhakad (Querist)
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28 March 2012 A person (X) has given a gift of Rs. 115000/- to his sister's daughter( Y0.

I want to know on following points-

1. Whetehr this relation ( sister's daughter) is in relative defination?

2. Whether it is taxable in hand of X or
Y.?

Yogesh Agarwal

Yogesh Agarwal (Expert)
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28 March 2012 Your question is answered as below:
1) This definition is not there in the definition of relative...

2) Hnece it is taxable in the hands of receiver that is "Y" in your case...

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 March 2012 Yes this relation is covered under the definition of relative as per following definition provided in Explanation to Section 56(2)(vi):

Relative means, inter alia, brother or sister of either of the parents of the individual

So from Y's point of view, her mother's brother (her mama) has gifted her a sum of money and accordingly this sum is NOT TAXABLE in the hands of Y.

Further, there is no tax implication for the donor (Y's mama).

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