Mr Muralidharan the answer to your question is as follows:
1) Taxation of Rs 1 Lakh gift from Grandfather (Cheque paid to Bride's Mother): As per proviso 2 to Section 56(2)(vii) any gift received from the relative or on the occassion of marriage is not taxable. In Rajinder Mohan Lal Vs DCIT (2012) 49 SOT 713 (Chandigarh), the ITAT held that what is exempt is only the gift received directly by the bride or bridegroom whose marriage is to be solemnized and not the gift received by the parent on such occassion. In this case, the assessee received monetary gifts on the occassion of his daughter's marriage through cheques in his favour from friends. The assessee also not transferred the same to the account of his daughter and utilised the amount for himself, hence it was held taxable. But in your case, the gift is received from the grand mother of the bride who must be either mother of your friend (or) Aunt of your friend (As we traditionally call, the brothers or sisters of grand parents as grand parents). The term relative as per Explanation (e) to Sec 56(2)(vii) inter alia includes 1) any lineal ascendant ; and 2) Brother or Sister of either of the parents. Hence it falls under gift from relatives, Hence the same shall not be taxable in the hands of your friend.
2) Taxation of Rs 1.34 Lakh gift from various friends and relatives on the occassion of daughter's marriage: This is taxable in the hands of your mother applying the decision of ITAT in Rajinder Mohan Lal Vs DCIT (2012) 49 SOT 713 (Chandigarh). But there is a mechanism to avoid the same. Ask your friend to deposit the amount in his daughter's account, and then after some days execute a gift deed between your friend and her daughte for gifting the same sum by her out of mutual love and affection for her mother. I have reasons to support my views. The bare provisions of Section 56(2)(vii)(a) of the Income Tax Act, which deals with monetary gifts is as follows:
"The following items shall be chargeable to Income tax under the head Income from Other Sources namely - where an individual or a Hindu undivided family receives, in any previous year, from any person or persons on or after the 1st day of October, 2009 any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum"
Here as against the clubbing provisions of the Income tax Act, which uses the words "without adequate consideratoin", the words used are without consideration. As per Section 2(d) of the Contract Act, consideration inter alia includes doing something as well as abstaining from doing something. In many cases in clubbing provisions and deemed wealth concept in Income Tax and Wealth Tax Act, which uses the words "adequate consideration" it was held that mutual love and affection is good consideration but not adequate as the same could not be measured in monetary terms. The same is not the case with the gift of money governed by Sec 56(2)(vii)(a) which uses the words "without consideration".
Hence, if your friend wants to take the entire gift of Rs 1.34 Lakhs to her account, and not be liable to tax, it is still possible in the aforesaid manner.
Regards
K Sathish
CAclubindia
