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Gift received from relative

Pratik (Student CA Final ) (23 Points)

21 November 2018

If Individual Received Gift from Spouse's Brother's Spouse of Rs.10Lac.(Expired Spouse's Relative)

Spouse of Individual is died.

assessee has also married with other woman.

Is the Gift Taxable??

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4 Replies

Abhay Sethia (stundent) (300 Points)
Replied 21 November 2018

The deciding thing is the reletionship exist at the time receipt of the gift. hence it is taxable.

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Nitesh bind (Student CA Final ) (12692 Points)
Replied 27 November 2018

See, the main point is RELATIONSHIP OF HUSBAND AND WIFE MUST EXIST AT THE TIME WHEN SUCH GIFT WAS RECEIVED.

And Second Important point is RELATIONSHIP OF HUSBAND AND WIFE DOES NOT ENDS WITH THE DEATH OF SPOUSE although Husband got a right to remarry and Relationship of Husband-wife it ends when The Husband remarriage.

Now coming to your query:

1. If gift has been received before the Remarriage (even after death of wife) then such gift shall be exempt under section 56(2)(x).

2. I want to correct a little bit to my friend @ Mayur Patil that Brother and sister of Spouse are also Relative. So gift received from him as well would be exempt in husband hand.

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Z ( ) (2965 Points)
Replied 27 November 2018

Originally posted by : Nitesh bind
	See, the main point is RELATIONSHIP OF HUSBAND AND WIFE MUST EXIST AT THE TIME WHEN SUCH GIFT WAS RECEIVED. And Second Important point is RELATIONSHIP OF HUSBAND AND WIFE DOES NOT ENDS WITH THE DEATH OF SPOUSE although Husband got a right to remarry and Relationship of Husband-wife it ends when The Husband remarriage.Now coming to your query:1. If gift has been received before the Remarriage (even after death of wife) then such gift shall be exempt under section 56(2)(x).2. I want to correct a little bit to my friend @ Mayur Patil that Brother and sister of Spouse are also Relative. So gift received from him as well would be exempt in husband hand.

I wish to add a little more correction.

OP asked in respect of "...If Individual Received Gift from Spouse's Brother's Spouse."

So, it's not the case of Brother/Sister of Spouse, but a case of Spouse of the brother of spouse. Therefore, applicable provision is Explanation (e)(i)(G) to S.56(2)(vii) and not (e)(i)(C) to S.56(2)(vii).

Nevertheless, such gift shall not be chargeable to tax.

[I would not call it an exemption. "Exemption" and "not being chargeable to tax" are 2 disparate things and have different treatments.]