gift from grand parents

Hello Shiny,

        The exception to sec 56 (2) include Gift received from "any lineal ascedant..." Thus gift received from parents of either of the parent is totally exempt from tax however, if the gift is received from any other grandparent say uncle or aunt of either of your parents does not qualify as a blood relation and as you said amount is in excess of Rs. 50,000 the entire amount is chargeable to tax.

Regards,

Shefali.   

hello shiny

u/s 56 (2)vi any sum received frm any relative is exempt

relative include

any lineal ascendant or descendant of individual so grandparents is also under  relative .then gift received of any amo from grandparents is not taxable.

56(vi) where any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1st day of April, 2006, the whole of the aggregate value of such sum:

If you interperate prov properly you find income is totally exemplted...provided they are parents of your parents

Since it is received from relatives, it is fully exempt u/s.56(vi).

56(vi) where any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1st day of April, 2006, the whole of the aggregate value of such sum: Provided that this clause shall not apply to any sum of money received (a) from any relative; or (b) on the occasion of the marriage of the individual; or (c) under a will or by way of inheritance; or (d) in contemplation of death of the payer; or (e) from any local authority as defined in the Explanation to clause (20) of section 10; or (f) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or (g) from any trust or institution registered under section 12AA. 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).] If you interperate prov properly you find income is totally exemplted...provided they are parents of your parents

 

56(vi) where any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1st day of April, 2006, the whole of the aggregate value of such sum:

If you interperate prov properly you find income is totally exemplted...provided they are parents of your parents

 

56(vi) where any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1st day of April, 2006, the whole of the aggregate value of such sum:

If you interperate prov properly you find income is totally exemplted...provided they are parents of your parents