Can a father-in-law gift to his daughter-in-law?

No, this gift shall be tax-free in the hands of the daughter-in-law.

Clubbing provision will apply. If she earns some returns from this gift, the return shall be taxable in the hands of the father-in-law.

Documenting this gift is necessary.

Originally posted by : Mihir
	No, this gift shall be tax-free in the hands of the daughter-in-law. Clubbing provision will apply. If she earns some returns from this gift, the return shall be taxable in the hands of the father-in-law. Documenting this gift is necessary.

Agree with Mihir. Section 64 provisions will apply. 

Scnario: Q1  Father in law demises after gifting and the property isnow sold by the gift reciepient( ie  the daughter in law  )  , where will the long term capital gains be assessed.

Q2 : Can the Dagher in aw further gift the property after demise . Which tax will be applicable then