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GIFT TO SON-IN-LAW

SATHYANARAYANA DONDETI (Academics) (36 Points)

03 October 2007

My father-in-law wants to gift a lakh of rupees to me. Is it taxable in my hands. I am an income tax payer.

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8 Replies

Bhuvnesh (Chartered Accountant) (101 Points)
Replied 04 October 2007

No, gift tax wont be charged on it. Income Tax Act provides exemption from gift tax in case gifts in the form of cash are received from specified persons. Such specified persons covers Father in Law as well.

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Ravikumar.G (Consultant) (18525 Points)
Replied 04 October 2007

What my friend said is perfectly correct. The following details for your value addtion. Applicability: Individual and HUF Taxability: Any sum of money, aggregate value of which exceeds Rs.50,000 /- is received during the previous year without consideration, by an Individual or a HUF from any persons on or after 01.04.06 then the whole of the aggregate of such sum will be taxable. Exceptions: Gifts received from the following persons not taxable: 1) Relative 2) On the occasion of the marriage 3) Under a will or by way of inheritance 4) In contemplation of death of the payer 5) Any local authority 6) Trust or Institution u/s 10(23C) 7) Trust or Institution u/s 12AA Relative means: a) Spouse of the Individual b) Brother or sister of the individual c) Brother or sister of the spouse of the individual d) Brother or sister of either of the parents of the individual e) Any lineal ascendant or descendant of the individual f) Any lineal ascendant or descendant of the spouse of the individual g) Spouse of the person referred to in clauses (b) to (f) above Notes: 1. Subject to clubbing provisions applicable for Gift received from Spouse and Father-in-Law. 2. The individual can receive gifts without attracting tax also from lineal ascendants and decedents of the individual other than those mentioned in the above chart.