Gift and tax implications

Yes.....

Mandatory

​​​​​Thanks for the reply. Please clarify whether such gift attracts gift tax and if so what is the rate of tax and who will be taxed. 

No Gift tax

Thanks once again for the prompt reply.

If Stamp Duty above Rs. 50000 will be taxable

I understand that if the value of the gifts to others exceeds ₹50000 is taxable in the hands of recipient and there will be no tax if the recipient is close relative and in this case son-in-law is a close relative to father-in-law. Please guide me.

@ Subbiah Sir,

There is no concept of Gift Tax now. The Gift Tax Act 1958, has been repealed ( cancelled / abolished ) in the year 1998. So Gifts are now subject to the Income Tax Act 1961. [ Section 56(2)(x) of the IT Act 1961 ].

And you are absolutely correct that if the Gifts / Property is received from any "RELATIVE", then it is exempt from Income Tax Act 1961. Sir you can refer the definition of Relative for this Section purpose U/s 56(2)(vii) of the Income Tax Act 1961.

NOTE : Gifts upto Rs. 50,000 p.a. are exempt from Income Tax in India.

Regards,
Shivam RC.

Thanks for the clarification.

Your Most Welcome Sir...

That is correct. Gifts up to Rs. 50,000 are exempt if the recipient is a close relative. There are more than 30 instances wherein, the recipient may be a close relative, this case being of them. Know about more such instances here https://www.caclubindia.com/articles/meaning-of-relative-as-per-income-tax-act-1961-40811