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Posted Date : 28-Oct-2013 , 08:39:39 pm | Posted By: Ramesh Jaju
Category :
Income Tax | Answers :
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Comments :
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Dear All,
Kindly guide me on the following issue
Will any tax liability arise if Mrs."Z" sister of Mr."X" give cash or kind (amounting to Rs.10 lacs+ ) as GIFT to Mrs."X".
Kindly provide me with relevant provisions and / or case laws as per income tax act.
Note - Mrs."X" is wife of Mr."X" and all the above three share natural relationship.
Mrs. "Z" (Donor) and Mrs. "X" (Donee). |
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Answers:
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 Answer by: Shankygarg |
| The provisions of Section 56(2)(vi) are applicable to the taxation of gifts in excess of Rs. 50,000 in a financial year in the aggregate, for gifts received from non-relatives.
Thus, any gift from relatives of any amount during the financial year is completely exempt from tax. Here,Mrs."X" is relative of Mrs."Z"(Spouse of brother & sister is also a relative).
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| Answer by: Shankygarg |
| The provisions of Section 56(2)(vi) are applicable to the taxation of gifts in excess of Rs. 50,000 in a financial year in the aggregate, for gifts received from non-relatives.
Thus, any gift from relatives of any amount during the financial year is completely exempt from tax. Here,Mrs."X" is relative of Mrs."Z"(Spouse of brother & sister is also a relative).
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| Comments |
| Posted By : Deepak |
30-Oct-2013, 11:37:57 |
| Relative means:-
1)spouse of an individual
2)Brother & sister of Individual
3)Brother or sister of the spouse of the individual
4)Brother & sister of the either of the parents of the individual
With reference to third point i.e "brother & sister of the spouse of the indidual" covers and shows relations with the assessee, and therefore any amount recvd above 50000 from related party will be exempt
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