Gifts under income tax act

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This query is : Resolved

Krishna Murthy (Querist)

07 November 2007 Is a gift received by Mr X from mother of his spouse comes with in the purview of gifts received from relatives and there by not taxable?

ASHISH YADAV

ASHISH YADAV (Expert)

08 November 2007 Dear Mr. Krishna Murty

Yes,the gift recived by Mr. X from his mother of his spouse is not taxable to LIMIT amount rs.50000.

Its comes in the defination of relative.

as per income tax act,Relative includes
ANY LINEAL ASCENDANT OR DESCENDANT OF THE SPOUSE OF INDIVIDUAL IS A RELATIVE.

Krishna Murthy

Krishna Murthy (Querist)

08 November 2007 Is it exempt only to the extent of Rs 50000... wht happens if the he received 100000... does lineal ascendent include both father and mother? like wise grand father and grand mother and so on...

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)

19 November 2007 I think as per explanation given in section 56, mother of spouse flls under the definition of relatives. Hencve, no limit.

Please revert, if some one is not agreeing.

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