Can anyone please share their expertise with the following query:
Ms A wanted to make a gift of Rs 8 lacs to her sister Ms B for some exigency faced by B. On the date of transfer A did not have suffcient money in her account. hence, the funds were transferred by A's husband C to B's account.
Can it be treated a valid gift made by A to B. Or the gift deed can be made showing a gift by C to B.
What will be the tax liability of above trasaction to A, B and C.
An early response by anyone will be highly appreciated.
27 September 2016
Sister's Husband is covered under the term "Relative" hence, any gift received from them by other sister is exempt in income tax act so you can show the gift given by C to B and it is not taxable and you can made the gift deed for the same. Thanks.
CAclubindia
