whether gift from son in law (NRE gift ) is taxable which is in exess of 50000.more over is son in law comes under the category of relative.?????what is the exemtion limit applicable to NRE gifts
Applicability :
Individual and HUF
Taxability:
Any sum of money,aggregate value of which exceeds Rs.50,000 /- is received during the previous year without consideration,
by an Individual or a HUF from any persons on or after 01.04.06 then the whole of the aggregate of such sum will be taxable.
Exceptions :
Gifts received from the following persons not taxable :
1) Relative
2) On the occasion of the marriage
3) Under a will or by way of inheritance
4) In comtemplation of death of the payer
5) Any local authority
6) Trust or Institution u/s 10(23C)
7) Trust or Institution u/s 12AA
Relative means:
a) Spouse of the Individual
b) Brother or sister of the individual
c) Brother or sister of the spouse of the individual
d) Brother or sister of either of the parents of the individual
e) Any lineal ascendant or decendant of the individual
f) Any lineal ascendant or decendant of the spouse of the individual
g) Spouse of the person referred to in clauses (b) to (f) above
In your case the entire gift from son in law is fully exempt. Whether he is a redisent or non resident which is immeterial. Also see the Diagramatic view in the articles which i have submitted.
https://www.caclubindia.com/article_list_detail.asp?article_id=285/ please see the diagramatic view you can easily understand the meaning of relations.
as per defination of Relative for this purpose, Son in Law is relative and gift by Son in Law is fully exempt, whether he is resident or non resident, whatever the amount may be