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IS THIS GIFT TAXABLE OF NOT?

CA Balram Sharma (CA) (839 Points)

05 November 2009

SUPPOSE Mr. A HAVE TO WIFE, "X" and "Y".

Mrs X gave the gift in cash to Mrs. Y , Rs 100,000.

IS THE GIFT IS TAXABLE IN THE HAND OF Mrs. Y OR NOT?

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35 Replies

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

ya it is taxable as it exceeds Rs.50,000.

why should we think of any exceptions???

CA Balram Sharma (CA) (839 Points)
Replied 05 November 2009

Originally posted by :Trinath
"	ya it is taxable as it exceeds Rs.50,000. why should we think of any exceptions???	"

DON'T YOU THINK THAT THEY NOT RELATIVE

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

ya as they are not relatives, it is taxable.

go through the definition of relative for the purpose of taxing a gift

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

according to sec 56(2) gift recived from a relative is not taxable.

and relative does not include the person as u said!!!

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

hey but ..........................

here is anoder way..

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

If Mrs X and Mrs Y are related say like sisters, ascendants, other relation.it can exempted in that capacity.

well i think soo.......any one support or oppose my answer

CA Balram Sharma (CA) (839 Points)
Replied 05 November 2009

YES TRINATH UR RIGHT,

ACT NOT COVER THIS SITUATION ?

SPOUSE OF SPOUSE NOT COVERED IN THE ACT

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

but Mr.Balaram see my latest view that if Mrs X and Mrs Y are related, then it may be exempt in that capacity.

i think soo...

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

Yaar TRINATH... Why do get an exception of two sisters marrying to single person???

Nywz, if the two individuals have single spouse, then they are not relatives...

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 05 November 2009

And yes, if the two wives are, if at all, relatives of each other (relativ considered under provisions of income tax)... than it can be called as gift from a relative..

Then, it becomes a completely different Q... Then, MR.A - poor guy, has not to be considered at all.

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

am not saying dat dhiraj

if Mrs X and Mrs Y are sister?

Mrs Y received gift from Mrs X( her sister)......relative includes brother or sister of the individual.

so forget about that they are spouses of Mr A.

y received gift from X n X is her sister

so it will be exempt now!!!

got me???

Anumanchipalli Sathikonda (Tax Consultant) (1349 Points)
Replied 05 November 2009

Dear All

The word "Sister" is not defined in the Income-tax Act. Hence one should get the meaning from general clauses act. If general clauses act accepts two wives of a person as sisters the gift is exempted otherwise taxable. I am not fully aware of the general clauses act. If any one enlightens me on this aspect i.e meaning of sister as per geneal clauses act I will be grateful.

Best Wishes

Sathikonda

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9058 Points)
Replied 05 November 2009

its taxable

CA Trinath Galla (student) (3130 Points)
Replied 05 November 2009

Originally posted by :D н ! я σ √
"	And yes, if the two wives are, if at all, relatives of each other (relativ considered under provisions of income tax)... than it can be called as gift from a relative.. Then, it becomes a completely different Q... Then, MR.A - poor guy, has not to be considered at all.	"

firstly did u get wat am saying?