Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Can FIL take money from DIL 40 Lac thru bank. DIL money source business. FIL gave Capital and help

292 views

Save Share

CHANDER KANT AZAD

PROPRIETOR

48 Points Posted on 24 December 2021

Can father in law take money Rs 40 Lac from daughter in law (through banking channel) without any tax liability. Source of money is her business income after marriage. Fatther in law supported her with Full Capital and physical help in business.

Replies (2)

Quick Summary

This discussion clarifies whether a father-in-law (FIL) can receive £40 Lac from his daughter-in-law (DIL) through banking channels without incurring tax liabilities. The DIL's funds originate from her business income. According to tax laws, a FIL is considered a 'relative' to the DIL, allowing for tax-exempt gifts between them. Therefore, the FIL can receive the money as a gift without tax implications, provided it's conducted through the banking system.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212441 Points Posted on 24 December 2021

Yes, FIL can take any amount from DIL through banking channel, as GIFT, without any tax liability; as She come under the definition of 'Relative' by virtue of explanation given under sec. 56(2)(x)(a), read sub sec. (v)(e)(E) w.r.t (G).