MY CLIENT IS A FEMALE. HER OWN BROTHER, BROTHER'S WIFE, BROTHER'S SON AND BROTHER'S SON'S WIFE IS GIFTING ONE LAKH EACH BY CHEQUE FOR HER 60TH BIRTH DAY. ARE THE GIFTS FROM THE ABOVE RELATIVES EXEMPT FROM INCOME TAX IN THE HANDS OF MY CLIENT.?
5 Replies
CA Khyati Pithadia
(Chartered Accountant)
(173 Points)
Replied 16 January 2020
Gift from below would be exempt:
1) HER OWN BROTHER
2) BROTHER'S WIFE
Gift from below is taxable as it would not cover under the definition of relative as per Income Tax Act:
1) BROTHER'S SON
2) BROTHER'S SON'S WIFE
Samir
(Accountant)
(116 Points)
Replied 16 January 2020
gifts from blood relation not taxable and gifts receive from grand father and mother
father in law and mother in law not taxable gift receive in marriage also not taxable
Amish
(General)
(340 Points)
Replied 18 January 2020
Just curious if this is legal work around?
Brother's son first gifts to brother (his father)
And then brother should gift it to her (i.e. sister)
RAMGOPAL HS
(PROPRITOR)
(37 Points)
Replied 01 February 2020
Thanks for your kind response and opinion
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 18 June 2020
Gift from specified relative is exempt from tax as per Section 56(2) of the Income Tax Act. Therefore, there will not be any tax liability on the gift of Rs 30 lakh received by your son. Also, there will no tax liability on you. Any income received on the gift amount will be taxable in the hands of your son
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