Gift tax Act-15lacks gift by cheque

This query is : Resolved

Pratik K (Querist)
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10 March 2009 If a person receives RS15lacs cheque from his Mami,will it be taxable?

If yes then to whom the person or his mami?

pls explain.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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10 March 2009 Yes, taxable with, in hands of receiver u/s 56.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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10 March 2009 Not taxable in Gift tax Act, Its taxable in Section 56 of Income Tax Act now, in the hand of reciever. But in your case it is not taxable as Mami is covered in the definition of Relative. Please check this definition

Section 56(2)(vi)
For the purposes of this clause, “relative” means—

(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).]

Your case is covered if you read jointly the clause (iv) with clause (vii)

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