Dear All,
Kindly guide me on the following issue
Will any tax liability arise if Mrs."Z" sister of Mr."X" give cash or kind (amounting to Rs.10 lacs+ ) as GIFT to Mrs."X".
Kindly provide me with relevant provisions and / or case laws as per income tax act.
Note - Mrs."X" is wife of Mr."X" and all the above three share natural relationship.
Mrs. "Z" (Donor) and Mrs. "X" (Donee).
No. it wont be taxable. Specifically exempted under 56(2)(v)
Gift for relative{defined under the act} is exempt from the purview of tax..
In your case gift to brother's wife its exempt.as she is under relative.
Relatives from whom Gift is permissible under Income Tax
|
List of Male Donors |
List of Female Donors |
|
Father (Papa or Pitaji) |
Mother (Maa or Mummy) |
|
Brother (Bhai) |
Sister (Bahin) |
|
Son (Beta or Putra) |
Daughter (Beti or Putri) |
|
Grand Son (Pota or Potra) |
Grand Daughter (Poti or Potri) |
|
Husband (Pati) |
Wife (Patni) |
|
Sister’s Husband (Jija) |
Brother’s Wife (Bhabhi) |
|
Wife’s Brother (Sala) |
Wife’s Sister (Sali) |
|
Husband’s Brother (Dewar) |
Husband’s Sister (Nanad) |
|
Mother’s Brother (Mama) |
Mother’s Sister (Mausi) |
|
Mother’s Sister Husband (Mausa) |
Wife’s brother’s wife (Sala Heli) |
|
Father’s Brother (Chaha or Tau) |
Father’s Brother’s Wife (Chachi or Tai) |
|
Father’s Sister’s Husband(Fufa) |
Father’s Sister (Bua) |
|
Grand Father (Dada) |
Grand Mother (Dadi) |
|
Great Grand Father (Pardada) |
Great Grand Mother (Pardadi) |
|
Daughter’s Husband (Jawai) |
Son’s Wife (Bahu or Putra Vadhu) |
|
Wife’s Father (Sasur) |
Wife’s Mother (Sas) |
|
Husband’s Father (Sasur) |
Husband’s Mother (Sas) |
|
Wife’s Grand Father (Dada Sasur) |
Husband’s Grand Mother (DadiSas) |
|
Husband’s Grand Father (Dada Sasur) |
Wife’s Grand Mother (Dadi Sas) |
|
Wife’s Great Grand Father(Bada Dada Sasur) |
Husband’s Great Grand Mother (Badi Dadi Sas) |
|
Husband’s Great Grand Father(Bada Dada Sasur) |
Wife’s Great Grand Mother (Badi Dadi Sas) |
|
Brother’s Wife(Bhabhi) |
Mother’s Brother’s Wife (Mami) |
|
Husband’s Brother’s Wife(Devrani or Jithani) |
NOTE:
1. Subject to clubbing provisions applicable for Gift received from Spouse and Parent-in-Law.
2. The individual can receive gifts without attracting tax also from lineal ascendants and decedents of the individual/spouse of the individual other than those mentioned in the above chart.
This is a large amount. Prepare a gift deed to be on the safe side. If the AO questions this cash credit and you are unable to produce documentary evidence, the whole amount shall become taxable under income from other sources.
CAclubindia
