Taxability of gift

This query is : Resolved 

30 May 2016 Taxability of a cash gift given exceeding Rs.50,000/- to Sister in laws son's wife.
Will this cash gift received be taxable in the hands of Sister in laws son's wife ( Assessee) ??

30 May 2016 What does the Income Tax Act say about gifts?

The I-T Department considers:

money given in cash/cheque or drafts
immovable property such as land or building or both
movable property like shares, jewellery, drawings, paintings or sculptures, gold bars as gifts.
When are gifts exempt from tax?

You are exempt from tax under the following situations:

monetary value of all gifts received don't add up to Rs.50,000.
Received from a relative
Received on occasion of marriage
Received by way of a will or inheritance
Received in contemplation of death of the payer
Received from Local Authority
Received from a fund, foundation, university, or other educational institution, hospitals, or any trust of institution defined in Section 10(23C)
Money Received from a charitable Institution registered under section 12AA
Who is a relative?

Your immediate family - parents, siblings, spouse and children
Your spouse's parents and siblings
Your parents' siblings
Your siblings and their spouses
How are gifts taxed?

These are chargeable under the head "Income from Other Sources" in the receiver's income tax returns



Abhishek Ranjan Singh
ARS Solutions
www.arssolutions.co.in
+919022838615

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08 October 2021 Yes the gift is taxable, as the person is not 'relative' as per sec 56(2) of IT act.




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