Gift from family

Tax queries 788 views 1 replies

 

Sir(s),

 

Following question  relate to my own family  and not to  any client.  I will be very happy to receive answer ON THIS.

 

Question:

Can the following  be considered as gift to RELATIVES  without being taxable under section 56 (2) in light of the  meaning assigned to word “relative” in the Explanation to clause (vi) of sub-section (2) of this section;

 

1.         One Mr. P wants to gift immovable property to one Mr. C. Where Mr. C is brother of father of Mr. P. 

 

2.         Mrs. X wants to give gift of immovable property to one Mr. Y. Where Mr. Y is   brother of  father in law of Mrs. X. .

 

 

3.         Mrs. X wants to give gift of immovable property to one Mrs. Z. Where Mrs. Z is wife of  brother of  father in law of Mrs. X. . 

If in your opinion any of above transaction fall under GIFT TO RELATIVE without being taxable under section 56(2) then kindly confirm under which of the following clause they become relative ;

 

       (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);]

 

 

Sir, personally I feel that any of three cases stated above are not relative but I will be very happy if anybody  verifies all permutations / combinations  and can reply me at earliest.

 

 

Replies (1)

Case 1 :Example : Mr.Praveen gifts land to Mr. Chandra. Chandra is the brother of praveen's father manoj.

As per section 56(2)(iv), brother or sister of either of the parents of the individual creates the position of relative. Individual is praveen. Praveen's parent is manoj. & Manoj's bro is chandra.

Case 2 : Example : Mrs. ragini gifts land to Mr.Prabhu, where prabhu is the brother of sundar. Sundar is the father in law of ragini

As per section 56(2)(vi), any lineal ascendant or descendant of the spouse of the individual. Individual is Mrs. Ragini, any lineal ascendant or descendant is ragini's father in law's bro mr. Prabhu

Case 3 : Mrs. Ragini gifts land to Mrs. Tina , wife of Mr.Prabhu, brother of Ragini's father in law Mr.sundar.

As per section 56(2)(vi), any lineal ascendant or descendant of the spouse of the individual, where individual is ragini, & Mrs.Tina is the descendant

 


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