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Gift to relatives

28 April 2019

whetheeGift given to sister's husband or sister's daughter is allowable

whether stamp duty applicable on such gift given in cash

and whether such gift is like unregulated deposits which is banned under banning of unregulated deposits schemes ordinance 2019 w.e.f 22/02/2019

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7 Replies

rama krishnan (12234 Points)
Replied 28 April 2019

sister's daughter doesn't covered under the definition to relatives. hence tax will be charged in the hands of sisters daughter

Satish Kavitake (389 Points)
Replied 29 April 2019

sir, pl provide definition of relatives to whom gift can be given and the same will be exempt from income tax

and also provide income tax section reference number

Avtar Singh (363 Points)
Replied 29 April 2019

Wrong advise. It will not be taxable.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 29 April 2019

Mr. Avtar singh, PLS go through the provisions before commenting on reply Here's the definition for relative Explanation.—For the purposes of this clause, "relative" means— [i] spouse of the individual; [ii] brother or sister of the individual; [iii] brother or sister of the spouse of the individual; [iv] brother or sister of either of the parents of the individual; [v] any lineal ascendant or descendant of the individual; [vi] any lineal ascendant or descendant of the spouse of the individual; [vii] spouse of the person referred to in clauses [ii] to [vi];

Satish Kavitake (389 Points)
Replied 29 April 2019

sir, whether gift given to sister's husband is taxable under income tax act. I think as per above definition , such gift is not taxable and whether stamp duty is to be paid on such gift paid in cash. pl advise

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 29 April 2019

Gift to sister's husband is not taxed in the hands recipient but gift to sister's daughter is chargeable in the hands of recipient

NIKHIL GUPTA (ARTICLE ASSISTANT) (44 Points)
Replied 30 April 2019

Sister's husband is covered under definition of Relative
as per last clause of definition given above , so not taxable to recipient

but sister's daughter is not covered
so taxable to recipient