Indudhar (Tax Advocate) (427 Points)
06 May 2013a person has receieved gift of Rs 10 lakhs from his father in law(wifes father).
He has invested the same in his business which was used to clear the bank loan.
Is such gift exempt and does clubbing provisions applicable and how to compute the clubbed income?
please help me out guys...
Thanks in anticipation
VIKAS.A
(SOMETHING IS BETTER THAN NOTHING)
(1095 Points)
Replied 06 May 2013
Revanth
(Job)
(145 Points)
Replied 06 May 2013
Father in law has been covered under the definition of relative so no gift tax is applicable
Gift from relatives are not taxable in the hands of the perosn , receving such gift.
And Father in law is covered in the definition of relative, hence any gift from father in law is not taxable.
Moreover , there is no specific provisions under the clubbing provisions, which makes such transaction taxable.
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