Can Mother in Law gift to her daughter in law

Kindly clarify if a mother in law [ who is non taxable but files her returns ]  can gift cash or kinds  to her daughter in law . In turn the daughter in law transfer the funds in her proprietorship business , which is also non taxable, what is the tax liability  and implications of Income tax . 

reply to my new mail id  info @ modipowersolutions.in and old one davite @ vsnl.com is deactivated since 3 years. Kindly note new e mail id and can I change my user id online.