Taxability of gift

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Sonu Kr. Gupta (Querist)
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16 April 2017 I hv recd cash gift of ₹ 25lacs from my mother in law but at the time of receiving the money I didn't get marry with her daughter, after 15 days my marriage got registered. Is it exempted?? Suppose, If I receive the same at time of marriage or after marriage from my mother in law, then what would be the tax implications??

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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17 April 2017 If you have received gift from mother in law before marriage with her daughter, your mother in law will be non relative for you and as such you can not accept gift more than Rs 50000. But situation will be different if cash gift is received on the occassion of after marriage. After marriage she will be relative and gift received from relative is exempt. On the ocassion of marriage also it will be exempt by the provisions of section 56(2).

Sonu Kr. Gupta

Sonu Kr. Gupta (Querist)
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17 April 2017 when we should check the relationship amOng donor & donee?? whether clubbing of income will arise in above situation??

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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17 April 2017 clubbing of income does not arise in gift from mother in law to son in law.

Sonu Kr. Gupta

Sonu Kr. Gupta (Querist)
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17 April 2017 thank you sir, one more thing that - Selling of sim cards by airtel distributor is chargeable to vat or service tax. Distributors buy recharge cupons from the company @ 4.25% margin and when they are selling recharge balance & cupons to Retailers they pass on 3% margin to Retailers they keep only 1.25% margin with himself. While computing his total income under income tax, the turnover would be only commission fixed by telecom co. i.e. 4.25% or whole amount received from Retailers i.e. recharge cupon amount. Is they are also liable for service tax, if yes then under which service??