Income tax exemption on gift from father in law

Page no : 2

David Hume (5 Points)
Replied 03 April 2017

Hi, My mother has issued cheques and given them to my wife for purchase of car. Those cheques will be in favour of a car agency towards payments for the car purchase. The car will be registered in the name of my wife. So the car would be paid for by my mother but the car will be registered in my wife's name. Whether it will be exempted from gift tax? My mother is a tax paying individual. Please reply. Thanks.

Upgrade to CAclubindia Pro. Subscribe Now!

Bhasker Sai (Retired) (22 Points)
Replied 07 January 2018

Daughter-in-law is a relative. Gift received by daughter-in-law is tax exempt. Buy reverse is not true, ie, daughter-in-law cannot give a tax exempt gift to father-in-law. A daughter-in-law is neither an ascendant nor a descendant. Two way tax exempt gifting is possible only where they are ascendants or descendants or blood relatives meaning brothers or sisters. For eaxample father to son, son to mother or brother to spouses sister and here reverse is possible as you are gifting your sisters spouse.

Does anyone disagree? Please explain why?

sharad (CA Practice ) (22 Points)
Replied 23 February 2018

Read relative definition in section 56 and refer explantion -where it mentioned spouse of the person referred to in clauses ii to vi . Which means son 's wife.

Siddharth Goel (Chartered Accountant) (3026 Points)
Replied 04 July 2018

Originally posted by : Bhasker Sai
	Daughter-in-law is a relative. Gift received by daughter-in-law is tax exempt. Buy reverse is not true, ie, daughter-in-law cannot give a tax exempt gift to father-in-law. A daughter-in-law is neither an ascendant nor a descendant. Two way tax exempt gifting is possible only where they are ascendants or descendants or blood relatives meaning brothers or sisters. For eaxample father to son, son to mother or brother to spouses sister and here reverse is possible as you are gifting your sisters spouse. Does anyone disagree? Please explain why?

Hi,

Yes. This is correct. This can be confrmed by following the following table.

These are the relatives as per the definition of relatives under the Income Tax Act for the purpose of Gits taxation.

S no.	प्राप्तकर्ता से सम्बन्ध	Relation with the recipient
1	पति/पत्नी	Husband/Wife
2	भाई	Brother
3	बहन	Sister
4	ननद	Husband’s Sister
5	जेठ/देवर	Husband’s Brother
6	साली	Wife’s Sister
7	साला	Wife’s Brother
8	बुआ	Father’s Sister
9	चाचा/ताऊ	Father’s Brother
10	मौसी	Mother’s Sister
11	मामा	Mother’s Brother
12	पिता	Father
13	माता	Mother
14	बेटा	Son
15	बेटी	Daughter
16	दादा	Grandfather
17	परदादा	Great grandfather
18	दादी	Grandmother
19	परदादी	Great grandmother
20	पोता	Grandson
21	पोती	Grand daughter
22	पड़पोता	Great grandson
23	पड़पोती	Great grand daughter
24	ससुर	Husband’s Father
25	ससुर	Wife’s Father
26	सास	Husband’s Mother
27	सास	Wife’s Mother
28	पति के दादा	Husband’s grandfather
29	पत्नी के दादा	Wife’s grandfather
30	पति की दादी	Husband’s grandmother
31	पत्नी की दादी	Wife’s grandmother
32	पति के परदादा	Husband’s great grandfather
33	पत्नी के परदादा	Wife’s great grandfather
34	पति की परदादी	Husband’s great grandmother
35	पत्नी की परदादी	Wife’s great grandmother
36	भाई की पत्नी (भाभी)	Brother’s wife
37	जीजा	Sister’s husband
38	नन्दोई	Husband’s sister’s husband
39	साडू	Wife’s sister’s husband
40	दौरानी/जेठानी	Husband’s brother’s wife
41	सलाईली	Wife’s brother’s wife
42	फुपा	Father’s sister’s husband
43	चाची/ताई	Father’s brother’s wife
44	मौसा	Mother’s sister’s husband
45	मामी	Mother’s brother’s wife
46	बहु	Son’s wife
47	दामाद	Daughter’s husband
48	पोते की पत्नी	Grandson’s wife
49	पड़पोते की पत्नी	Great grandson’s wife
50	पोती का पति	Grand daughter’s husband
51	पड़पोती का पति	Great granddaughter’s husband

Prachi Bansal (3129 Points)
Replied 26 February 2021

Sir what about neice and nephew?

are the gifts received from them taxable?

Upgrade to CAclubindia Pro. Subscribe Now!

n1ghthawk (Engineer) (7 Points)
Replied 04 March 2021

Hi,

Doesn't S no. 24 and 46 imply two way tax exempt gifting is possible?

Vishaltisha (2 Points)
Replied 11 October 2021

Dear Expert Members
On the line of Shivaniji, I need an urgent help.
My father get a share in sale of joint property. Before the sale of house, we have purchased a flat though bank loan which is in my wife's name.
Now we want to pay off the loan through my father's money which he got from the sale of joint property.
1. Is the amount taxable in the hand of my father if he transfer the money to his daughter in law to pay a home loan which is going to complete a year.

2. The house is in my wife name (daughter-in-law)

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 11 October 2021

Originally posted by : Vishaltisha
	Dear Expert Members On the line of Shivaniji, I need an urgent help. My father get a share in sale of joint property. Before the sale of house, we have purchased a flat though bank loan which is in my wife's name. Now we want to pay off the loan through my father's money which he got from the sale of joint property. 1. Is the amount taxable in the hand of my father if he transfer the money to his daughter in law to pay a home loan which is going to complete a year. 2. The house is in my wife name (daughter-in-law)