Gift received from mother-in-law & brother -in law

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This query is : Resolved

AARPEE (Querist)

18 December 2012 DEAR SIR.

MY WIFE IS GETTING GIFT OF RS.150,000.00 EACH FROM HER MOTHER IN LAW AND HER BROTHER IN LAW. BOTH OF THEM DOES NOT FALL INTO BLOOD RELATIONS CATEGORY. SO IN THAT CASE, WILL THIS GIFT CAN BE TREATED AS TAX FREE GIFT OR SHE HAS TO PAY TAX ON THESE RECEIPTS.

PLEASE ALSO ADVICE THE TAX LIABILITIES ON MOTHER IN LAW & BROTHER IN LAW ON GIVING THIS GIFT CHEQUE TO HER.

THANKS IN ADVANCE FOR YOUR EXPERT ADVICE.

Amol S Joglekar

Amol S Joglekar (Expert)

18 December 2012 It will be regarded as income of your wife.

AARPEE

AARPEE (Querist)

18 December 2012 Dear Mr.Amol.

I am little confused with different statements / answers received on my query. Earlier Mr.Sanjay answered me that such gifts are tax exempted under Income Tax Section 56(2) (vii) and he ask me to go through following link...
https://www.caclubindia.com/forum/relatives-u-s-56-2-vii-from-whom-gift-is-permissible--98674.asp#.UKchteScc8o

And with your answer , I am still in doubt whether my wife can avail the tax benefit with this Gift or not ?? Can you please check this url and answer.

Thanks again for taking your time to check and answer me.

Amol S Joglekar

Amol S Joglekar (Expert)

18 December 2012 Ther is a CAP of INR 50000

AARPEE

AARPEE (Querist)

18 December 2012 Dear Mr.AMOL.

I would request you to have a look on following URL...My discussions with Mr.Sanjay. I clearly ask for the Gift benefit on 150,000.00 Rupees and he confirmed that this will be tax free. Plz have a look and advice ....

https://www.caclubindia.com/experts/gift-within-family-relations-1145834.asp#.UNAycqx5fnI

Mohit Naithani

Mohit Naithani (Expert)

18 December 2012 MOTHER IN LAW AND BROTHER IN LAW IS UNDER THE DEFINATION OF RELATIVE AS PER INCOME TAX ACT 1961, HENCE ITS NOT TAXABLE IN THE HAND OF YOUR WIFE AND NOR IN THE HAND OF HER MOTHER IN LAW AND BROTHER IN LAW.

so plz go through the defination of relative under the head of income from other sources..

Mohit

Amol S Joglekar

Amol S Joglekar (Expert)

18 December 2012 Yes, in your case it falls under the definition of RELATIVE. And hence not taxable.

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AARPEE

AARPEE (Querist)

18 December 2012 Dear MR.MOHIT.

Thanks for your reply. Please re-confirm that the amount I mentioned (Rs.150,000.00 each from Brother In law & Mother In Law) can be treated as Tax Free Income under section 56(2) (vii) of IT act 1960.

Mohit Naithani

Mohit Naithani (Expert)

18 December 2012 Yes. its tax free for your wife....

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