IS THIS GIFT TAXABLE OF NOT?

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

Trinath... thats wat i'm saying...

If both of them sisters, and one recieves gift from another.., then its exempted...

Agar wo Mr. A ki sister se gift legi, to b exempted hai...

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

1.A person can take gift from the following relatives without any limit, where there would be no Income Tax u/s 56(2)(vi) of the Income Tax Act, 1961. 2.But one should avoid giving gift to spouse or son's wife because in that case clubbing provisions under section 64 will be attracted i.e. income from the gifted amount will be added in the income of donor
Coverage in case of married male i.e. husband	Coverage in case of married female i.e. wife	Coverage in case of unmarried male and unmarried female
1. Wife i.e. patni	1. Husband i.e. pati	1. NA
2. Brother i.e. bhai	2. Brother i.e. bhai	2. Brother i.e. bhai
3. Brother's wife i.e. bhabi	3. Brother's wife i.e. bhabi	3. Brother's wife i.e. bhabi
4. Sister i.e. bahan	4. Sister i.e. bahan	4. Sister i.e. bahan
5. Sister's husband i.e. Jija	5. Sister's husband i.e. Jija	5. Sister's husband i.e. Jija
6. Wife's brother i.e. sala	6. Husband's brother i.e. daver or jeth	6. NA
7. Wife's brother's wife i.e. salaj	7. Husband's brother's wife i.e. daverani ot jethani	7. NA
8. Wife's sister i.e. Sali	8. Husband's sister i.e. nanand	8. NA
9. Wife's sister's husband i.e. sadhu	9. Husband's sister's husband i.e. nanandoi	9. NA
10. Mother's brother i.e. mama	10. Mother's brother i.e. mama	10. Mother's brother i.e. mama
11. Mother's brother's wife i.e. mami	11. Mother's brother's wife i.e. mami	11. Mother's brother's wife i.e. mami
12. Mother's sister i.e. mousi	12. Mother's sister i.e. mousi	12. Mother's sister i.e. mousi
13. Mother's sister's husband i.e. mousa	13. Mother's sister's husband i.e. mousa	13. Mother's sister's husband i.e. maousa
14. Father's brother i.e. chacha or tau	14. Father's brother i.e. chacha or tau	14. Father's brother i.e. chacha or tau
15. Father's brother's wife i.e. chachi or tai	15. Father's brother's wife i.e. chachi or tai	15. Father's brother's wife i.e. chachi or tai
16. Father's sister i.e. bua	16. Father's sister i.e. bua	16. Father's sister i.e. bua
17. Father's sister's husband i.e. fufa	17. Father's sister's husband i.e. fufa	17. Father's sister's husband i.e. fufa
18. Father i.e. papa	18. Father i.e. papa	18. Father i.e. papa
19. Mother i.e. maa	19. Mother i.e. maa	19. Mother i.e. maa
20. Grand father i.e. dadu	20. Grand father i.e. dadu	20. Grand father i.e. dadu
21. Grand mother i.e dadi	21. Grand mother i.e dadi	21. Grand mother i.e dadi
22. Great grand father i.e. par dada	22. Great grand father i.e. par dada	22. Great grand father i.e. par dada
23. Great grand mother i.e. par dadi	23. Great grand mother i.e. par dadi	23. Great grand mother i.e. par dadi
24. Son i.e. beta	24. Son i.e. beta	24. NA
25. Son's wife i.e. bahu	25. Son's wifer i.e. bahu	25. NA
26. Daughter i.e. beti	26. Daughter i.e. beti	26. NA
27. Daughter's husband i.e. jawai	27. Daughter's husband i.e. jawai	27. NA
28. Grand son i.e. pota	28. Grand son i.e. pota	28. NA
29. Grand son's wife i.e. pot bahu	29. Grand son's wife i.e. pot bahu	29. NA
30. Grand daughter i.e. poti	30. Grand daughter i.e. poti	30. NA
31. Grand daughter's husband i.e. jawai	31. Grand daughter's husband i.e. jawai	31. NA
32. Wife's Father i.e. sasur	32. Husband's Father i.e. sasur	32. NA
33. Wife's Mother i.e. sas	33. Husband's Mother i.e. sas	33. NA
34. Wife's Grand father i.e. dadsra	34. Husband's Grand father i.e. dadsra	34. NA
35. Wife's Grand mother i.e dadas	35. Husband's Grand mother i.e dadas	35. NA
36. Wife's Great grand father i.e. bada dadsra	36. Husband's Great grand father i.e. bada dadsra	36. NA
37. Wife's Great grand mother i.e. badi dadas	37. Husband's Great grand mother i.e. badi dadas	37. NA

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

I hope this above list will make all relations and the taxation on gifts from them clear

Sunil (Trader) (2611 Points)
Replied 05 November 2009

The first wife will have to gift to her husband first. Then husband can gift that amount to second wife.

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

Originally posted by :Sunil
"	The first wife will have to gift to her husband first. Then husband can gift that amount to second wife.	"

Thanx for this post SUNIL, as it generated a more doubt in my mind...

As such, hindus can't marry two women at one time, they can't have two wives "LEGALLY"...

So, when according to u, first wife gifts Mr. A, ant then Mr. A gifts to his second wife........ Won't TAX AUTHORITY object of having two wives?? Or like ILLEGAL INCOME, Tax authority will just focus on taxation and not legality??

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

Originally posted by :Sunil
"	The first wife will have to gift to her husband first. Then husband can gift that amount to second wife.	"

Thanx for this post SUNIL, as it generated a more doubt in my mind...

As such, hindus can't marry two women at one time, they can't have two wives "LEGALLY"...

So, when according to u, first wife gifts Mr. A, ant then Mr. A gifts to his second wife........ Won't TAX AUTHORITY object of having two wives?? Or like ILLEGAL INCOME, Tax authority will just focus on taxation and not legality??

(Guest)

Yes the discussion has become very interesting. I think the Assessing Officer will not go into legallity of the issue and the gift will stand exempted.

Also its not necessary that Mr. A is hindu.....

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

Hi POONAM.., I know Mr. A is not necessarily a hindu only... But i was asking generally...

And u sure, assessing officer won't mind.., atleast on the grounds of jealousy.., "meri ek uski do kyun" like...

(Guest)

Well in that case its Assessing Officer's discretion. What can I comment......

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

hmmm...

Jatin Singh Negi (Country Analyst ) (505 Points)
Replied 05 November 2009

It will be taxable we do not have to see from our own side that the two are sisters or not or the two marriages are legal or not.

CA Balram Sharma (CA) (839 Points)
Replied 05 November 2009

Originally posted by :D н ! я σ √
"	1.A person can take gift from the following relatives without any limit, where there would be no Income Tax u/s 56(2)(vi) of the Income Tax Act, 1961. 2.But one should avoid giving gift to spouse or son's wife because in that case clubbing provisions under section 64 will be attracted i.e. income from the gifted amount will be added in the income of donor Coverage in case of married male i.e. husband Coverage in case of married female i.e. wife Coverage in case of unmarried male and unmarried female 1. Wife i.e. patni 1. Husband i.e. pati 1. NA 2. Brother i.e. bhai 2. Brother i.e. bhai 2. Brother i.e. bhai 3. Brother's wife i.e. bhabi 3. Brother's wife i.e. bhabi 3. Brother's wife i.e. bhabi 4. Sister i.e. bahan 4. Sister i.e. bahan 4. Sister i.e. bahan 5. Sister's husband i.e. Jija 5. Sister's husband i.e. Jija 5. Sister's husband i.e. Jija 6. Wife's brother i.e. sala 6. Husband's brother i.e. daver or jeth 6. NA 7. Wife's brother's wife i.e. salaj 7. Husband's brother's wife i.e. daverani ot jethani 7. NA 8. Wife's sister i.e. Sali 8. Husband's sister i.e. nanand 8. NA 9. Wife's sister's husband i.e. sadhu 9. Husband's sister's husband i.e. nanandoi 9. NA 10. Mother's brother i.e. mama 10. Mother's brother i.e. mama 10. Mother's brother i.e. mama 11. Mother's brother's wife i.e. mami 11. Mother's brother's wife i.e. mami 11. Mother's brother's wife i.e. mami 12. Mother's sister i.e. mousi 12. Mother's sister i.e. mousi 12. Mother's sister i.e. mousi 13. Mother's sister's husband i.e. mousa 13. Mother's sister's husband i.e. mousa 13. Mother's sister's husband i.e. maousa 14. Father's brother i.e. chacha or tau 14. Father's brother i.e. chacha or tau 14. Father's brother i.e. chacha or tau 15. Father's brother's wife i.e. chachi or tai 15. Father's brother's wife i.e. chachi or tai 15. Father's brother's wife i.e. chachi or tai 16. Father's sister i.e. bua 16. Father's sister i.e. bua 16. Father's sister i.e. bua 17. Father's sister's husband i.e. fufa 17. Father's sister's husband i.e. fufa 17. Father's sister's husband i.e. fufa 18. Father i.e. papa 18. Father i.e. papa 18. Father i.e. papa 19. Mother i.e. maa 19. Mother i.e. maa 19. Mother i.e. maa 20. Grand father i.e. dadu 20. Grand father i.e. dadu 20. Grand father i.e. dadu 21. Grand mother i.e dadi 21. Grand mother i.e dadi 21. Grand mother i.e dadi 22. Great grand father i.e. par dada 22. Great grand father i.e. par dada 22. Great grand father i.e. par dada 23. Great grand mother i.e. par dadi 23. Great grand mother i.e. par dadi 23. Great grand mother i.e. par dadi 24. Son i.e. beta 24. Son i.e. beta 24. NA 25. Son's wife i.e. bahu 25. Son's wifer i.e. bahu 25. NA 26. Daughter i.e. beti 26. Daughter i.e. beti 26. NA 27. Daughter's husband i.e. jawai 27. Daughter's husband i.e. jawai 27. NA 28. Grand son i.e. pota 28. Grand son i.e. pota 28. NA 29. Grand son's wife i.e. pot bahu 29. Grand son's wife i.e. pot bahu 29. NA 30. Grand daughter i.e. poti 30. Grand daughter i.e. poti 30. NA 31. Grand daughter's husband i.e. jawai 31. Grand daughter's husband i.e. jawai 31. NA 32. Wife's Father i.e. sasur 32. Husband's Father i.e. sasur 32. NA 33. Wife's Mother i.e. sas 33. Husband's Mother i.e. sas 33. NA 34. Wife's Grand father i.e. dadsra 34. Husband's Grand father i.e. dadsra 34. NA 35. Wife's Grand mother i.e dadas 35. Husband's Grand mother i.e dadas 35. NA 36. Wife's Great grand father i.e. bada dadsra 36. Husband's Great grand father i.e. bada dadsra 36. NA 37. Wife's Great grand mother i.e. badi dadas 37. Husband's Great grand mother i.e. badi dadas 37. NA	"

Thanks ,

Really good

CA Balram Sharma (CA) (839 Points)
Replied 05 November 2009

FRINDS ONE THING I WOULD LIKE TO ADD,

IS CLUBBING PROVISION WILL APPLICABLE TO MRS. X OF NOT, IF MRS. "Y"

INVEST THE SAME AMOUNT

hrithvik raj (article/ca final ) (161 Points)
Replied 05 November 2009

as from the meaning of 'relative' the 2 spouses Mrs X and Mrs Y are not at all relatives. therfore gift is taxable as it exceeds the exemption limit of Rs50000.

CA Balram Sharma (CA) (839 Points)
Replied 05 November 2009

Originally posted by :D н ! я σ √
"	Originally posted by :Sunil " The first wife will have to gift to her husband first. Then husband can gift that amount to second wife. " Thanx for this post SUNIL, as it generated a more doubt in my mind... As such, hindus can't marry two women at one time, they can't have two wives "LEGALLY"... So, when according to u, first wife gifts Mr. A, ant then Mr. A gifts to his second wife........ Won't TAX AUTHORITY object of having two wives?? Or like ILLEGAL INCOME, Tax authority will just focus on taxation and not legality??	"