THE GIFT WOULD NOT BE TAXABLE AT ALL AS IT IS COVERED UP IN THE DEFINITION OF LINEAR ACSENDENTS AND DECENDANTS.
AND IF ANY INCOME IS GENERATED IN THE FORM OF INTERST THEN THAT INTERST WOULD BE TAXABLE ONLY IN THE HANDS OF YOUR WIFE.
ACCORDING TO ME IT WOULD NEITHER BE CLUBBED IN THE HANDS OF THE HUSBAND NOR IN THE HANDS OF MOTHER IN LAW
While supporting your answer, can you provide me any link which is in support of your answer. Will be grateful.
Thank you
Where any sum of money, the aggregate value of which exceeds Rs.50,000, is received
without consideration by individual/HUF, the whole of aggregate value is taxable as
income from other sources.
Provided that this clause shall not apply to any sum of money received;
(a) from any relative; or
(b) on the occasion of marriage of the individual; or
(c) under a will or by way of inheritance; or
(d) in contemplation of death of the payer.
For the purpose of this, ‘relative’ means : ‐
(a) spouse of the Individual;
(b) brother or sister of the individual;
(c) brother or sister of the spouse of the individual;
(d) brother or sister of the either of the parents of the individual;
(e) any lineal ascendant or descendant of the individual;
(f) any lineal ascendant or descendant of the spouse of the individual;
(g) spouse of the person referred to in clause (ii) to (vi).
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That's absolutely correct but I am supposed to know regarding that clubbing provisions.
can u provide link regarding that clubbing provision.
Thank you
I SAID THAT ACCORDING TO ME EVEN I AM NOT COMFIRMED .
IF U GET TO KNOW ANYTHING ABOUT IT , PLEASE ME KNOW...
SORRY
Well suksham, I got my answer.
In computing the total income of any individual, there shall be clubbed all such income as arises directly or indirectly to the son's wife, of such individual, from assets transferred directly or indirectly to the son's wife by such individual otherwise than for adequate consideration.(The relationship of father in law/ mother in law and the daughter in law should subsist both at the time of transfer of asset and at the time of accural of income.)
Please refer section 64(1)(vi)
Thanx
Daughter in Law of Mother in Law does not come under the definition of Relative for Mother in Law but Father or mohther of daughter in law(Brother or sister of daughter in law) come under the definition of relative,Therefore if such cash is in excess of rs50000,then it will be taxable in the hands of Daughter in law her self and no tax implications for mother in law in case of income arise there on if else where invested!
Sorry Nuli Swami,
But mother in law and daughter in law are relatives and gift by mother in law to daughter in law is exempt wholly as per the provisions in our Income tax act.
Rather such amount of income which arises on such gift will be clubbed in the hands of her husband.
Will you please tell me from where you got to know or read, that (saas-bahu) are not relative.
Thank you and please let me know, coz I am not wrong.
CAclubindia
