Gift

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2011 query 1:- if brother's wife wants to give gift to his uncles's brother wife , can he do? what are the section is applicable? if gifts amonts to more than 50000/- what is the impact on the return of transferor 's computation of income? query 2:- what are the other ground on which other than reletive can give gift & it is allowable in incme tax act .

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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07 September 2011 1)
Yes gift can be given. But amount in excess of Rs 50000/- will be taxable in the hands of recipient. No tax impact on person giving gift.

2)

Gift to relatives is exempt in the hands of recipient.
Relatives u/s 56(2)(vii) from whom Gift is permissible under Income Tax Act, 1961

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi)

Apart from this any amount of gift received on occasion of marriage is fully exempt from tax.

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