Gift from maternal uncle to wife

Tax queries 729 views 3 replies

Prateek Patodia

3 Points Posted on 27 May 2019

My maternal uncle is desirous of giving my children a cash gift. Although giving it directly to them would be taxable, I understand that u/s 56(2) pt. d, he can give it to me.

1. Can he also give it to my wife? As there are certain litigations in my name, I do not wish to bring that amount into scrutiny.

2. Can I or my wife immediately gift it to my child in the same financial year?

Replies (3)

Gauthami

Student CA Final

431 Points Posted on 28 May 2019

as per sec 56(2)(x) if gift received from relative defined under income tax act, then such gift shall not be taxable. In that definition brother, sister & their spouses of an individual's parents are included. hence if received from him, it's not taxable. A gift received by child from his parents is also not taxable

Prateek Patodia

3 Points Posted on 28 May 2019

Originally posted by : Gauthami
	as per sec 56(2)(x) if gift received from relative defined under income tax act, then such gift shall not be taxable. In that definition brother, sister & their spouses of an individual's parents are included. hence if received from him, it's not taxable. A gift received by child from his parents is also not taxable

You didnt understand the question. Can the uncle gift to the individuals spouse?

And the second part of the question. can it be regifted to another person in same period?

Gauthami

Student CA Final

431 Points Posted on 28 May 2019

if individual's spouse receives gift from individual's maternal uncle then it shall be taxable & if she gifts the same asset to her child, then no tax liability