Sir(s),
Following question relate to my own family and not to any client. I will be very happy to receive answer ON THIS.
Question:
Can the following be considered as gift to RELATIVES without being taxable under section 56 (2) in light of the meaning assigned to word “relative” in the Explanation to clause (vi) of sub-section (2) of this section;
1. One Mr. P wants to gift immovable property to one Mr. C. Where Mr. C is brother of father of Mr. P.
2. Mrs. X wants to give gift of immovable property to one Mr. Y. Where Mr. Y is brother of father in law of Mrs. X. .
3. Mrs. X wants to give gift of immovable property to one Mrs. Z. Where Mrs. Z is wife of brother of father in law of Mrs. X. .
If in your opinion any of above transaction fall under GIFT TO RELATIVE without being taxable under section 56(2) then kindly confirm under which of the following clause they become relative ;
(i) spouse of the individual;
(ii) brother or sister of the individual;
(iii) brother or sister of the spouse of the individual;
(iv) brother or sister of either of the parents of the individual;
(v) any lineal ascendant or descendant of the individual;
(vi) any lineal ascendant or descendant of the spouse of the individual;
(vii) spouse of the person referred to in clauses (ii) to (vi);]
Sir, personally I feel that any of three cases stated above are not relative but I will be very happy if anybody verifies all permutations / combinations and can reply me at earliest.