Tax on gift (other sources)

CA Abhilasha Bhagat (ACA) (466 Points)

16 October 2012  

Dear all,

In income tax son of sister (nephew) is not relative for the purpose of gift. But if the nephew first gifts to his mother and then mother gifts the same to her sister, then whether the amount is taxable in any of the transaction?? (As son and sister both are covered in the definition of relative)

Whether any other provision of the act is attracted that levy tax in this case?