19 September 2018
Dear all, Please provide guidance on taxability of gift of Rs. 5 lakh received from married sister residing in nepal. Will there be any norms to follow as per FEMA??
20 September 2018
The provisions of Section 56(2)(vi) applicable to the taxation of gifts in excess of Rs. 50,000 in a financial year in the aggregate are applicable for gifts received from non-relatives. Thus, any gift from relatives of any amount during the financial year is completely exempt from tax. Therefore, it's crucial to know the meaning of the expression 'relative' for this purpose. The Explanation to Section 56(2)(vi) provides that the expression "relative" means: 1.Spouse of the individual; 2.Brother or sister of the individual; 3.Brother or sister of the spouse of the individual; 4.Brother or sister of either of the parents of the individual; 5.Any lineal ascendant or descendant of the individual; 6.Any lineal ascendant or descendant of the spouse of the individual; and 7.Spouse of the person referred to in clauses (ii) to (vi). @Kiran Goyal in your case...assessee received gift from Sister. It is exempt from tax and FEMA provisions are not applicable.
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