Sec 56 of income tax act

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Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2013 an individual receives shares as a gift from her cousin brother(chacha ka beta,bhai)of an amount exceeding Rs 50000/-.whether this is taxable income u/s 56.Explain in relation to relatives defination u/s 56 of Income tax Act 1956,

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 July 2013 Not only our IT Law is imported, but it seems that our Law-Makers have also exported their basic understanding about the family relationship and its bonding.
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This will be a taxable transaction if done directly.
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First these shares will be gifted to Chacha
(means donor's father) and then chacha can gift to his nephew.
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