My father (84 yr) has a servant (X) for the last 17 years who has been taking care of him. As a gratuity towards his services, he has done/intends to do the following:-
1. In his registered Will, he has indicated that proceeds from his FD's will be shared as per the nominations therein- i.e. no names or relations are mentioned. His nominations besides his sons also include X (substantial sum). The question is that since X has not been indicated by name in the Will, whether X will be subjected to Income/Gift Tax after execution of the Will?
2. He intends to gift an FD for Rs. 2 lakh for education of X's minor daughter (1 year old) to be exclusively used for the purpose as and when required. The question is whether Gift Tax is applicable and if so who has to pay; and whether his intentions can be honoured/provided for in another manner without tax implication?
PS:- The entire property including movables are self acquired by my father and LRs intend to fulfill his wishes.
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