Babua Banerjee (Accountant Junior Tax Practitioner) (123 Points)
05 September 2016
Ram M. Dixit
(CA Final (Author))
(376 Points)
Replied 05 September 2016
Since married daughter is not "relative" of individual (senior citizen),as per Explanation of Section 56 (2)(vii).
Gifted income would be chargeable to tax in the hands of married daughter.
Babua Banerjee
(Accountant Junior Tax Practitioner)
(123 Points)
Replied 06 September 2016
Thanx. For the reply. One of my friend suggested to make a gift deed, then there will be no tax liablity for the daughter. Is it correct?
Ram M. Dixit
(CA Final (Author))
(376 Points)
Replied 07 September 2016
No, asessee would not be exempted merly on the basis of execution of gift deed.
Mukesh Kumar
(Accounts Manager)
(1466 Points)
Replied 09 September 2016
Dear Sir
In I.T. act reletive means as under :-
Father (Papa or Pitaji)
Mother (Maa or Mummy)
Brother (Bhai)
Sister (Bahin)
Son (Beta or Putra)
Daughter (Beti or Putri)
Grand Son (Pota or Potra)
Grand Daughter (Poti or Potri)
Husband (Pati) Wife (Patni)
Sister’s Husband (Jija)
Brother’s Wife (Bhabhi)
Wife’s Brother (Sala)
Wife’s Sister (Sali)
Husband’s Brother (Dewar)
Husband’s Sister (Nanad)
Mother’s Brother (Mama)
Mother’s Sister (Mausi)
Mother’s Sister Husband (Mausa)
Wife’s brother’s wife (Sala Heli)
Father’s Brother (Chacha or Tau)
Father’s Brother’s Wife (Chachi or Tai)
Father’s Sister’s Husband(Fufa)
Father’s Sister (Bua) Grand Father (Dada, Pardada)
Grand Mother (Dadi, Pardadi)
Daughter’s Husband (Jawai)
Son’s Wife (Bahu or Putra Vadhu)
Spouse Father (Sasur)
Spouse Mother (Sas)
Spouse Grand Father (Dada Sasur)
Spouse Grand Mother (DadiSas)
Brother’s Wife (Bhabhi)
Mother’s Brother’s Wife (Mami)
Husband’s Brother’s Wife (Devrani or Jithani)
so that it is exempt
J. K. Ratan
(Compliance Advisor)
(794 Points)
Replied 09 September 2016
Agree with Mukesh Saini.......
Ram M. Dixit
(CA Final (Author))
(376 Points)
Replied 09 September 2016
Dear sir,
Nowhere in IT Act is written clearly, that MARRIED DAUGHTER is relative.
After a great analysis I found a judgement in this regard, namely
Manibhai Gaur Vs. Controller of ED (1980)
Now, I can say that Married Daughter does not cease to be 'Daughter' of her Father.
Hence, Married Daughter is 'relative' for the purpose of gifted income.
Since Married Daughter is 'relative' gifted income recieved from her father would be Exempt in her hands and not be taxable.
Ram M. Dixit
(CA Final (Author))
(376 Points)
Replied 09 September 2016
Gift Deed is required, in case of relative, for the exemption of Gifted Income.
Anurag Rai
(3 Points)
Replied 02 September 2017
CAclubindia
