Regarding taxability of gift.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2013 Gift made by dougher-in-law to father-in-law Rs. 500000/- in cash on several date for construction of house building which is in the name of father-in-law. Is there any taxability. House buildig is self occupied. Please let me know.

Pankaj Joshi

Pankaj Joshi (Expert)
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04 March 2013 The definition of Relatives includes spouse of any lineal ascendant or descendant and therefore Rs.500000/- is not taxable in the hands of father-in-law. But there is a doubt that whether Gift should be in cash or through account payee cheque or account payee demand draft. Please wait for reply from other experts. Gift deed must be executed in case of such gifts.