My wife's sister in law wants to gift her Rs3 lakh for our anniversary.
Is this taxable.
Does she need to make an agreement on stamp paper confirming that she gave the gift.
Does stamp paper need to be bought before or after receiving gift.
Gift will be by cheque.
Thanks in advance.
Not taxable, when gift received by sister or brother-in-law, by bank transfer/cheque. [exempt u/s. 56(2)(x) of the act.]
Gift confirmation on plain paper attested by two witnesses is sufficient when gift amount transferred through any banking mode.
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