If bhanja give gift to mama whether taxable to mama and if taxable then can he give to his mother and then in turn mother give to brother whether there will be any objection in that from taxation point
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Gift taxable or excempt
Replies (3)
Quick Summary
1. No. It would be taxable.
2. That way possible ...Exempted both transactions.
Refer exemptions of Sec 10(56)(2)
Gift from a nephew (bhanja) to the maternal uncle (mama):
• For the mama (recipient), his sister's son isn't in the relative list (which covers his own siblings, parents' siblings, and lineal ascendants or descendants). So a gift above Rs 50,000 is taxable for the mama.
• For the nephew receiving from the mama: the mama is a "brother of the mother" (sibling of a parent), so he's a relative. Gifts from mama to nephew are exempt.
• If the mama then gifts it to his mother (the nephew's grandmother), that's a lineal ascendant, so exempt. But the first leg (nephew to mama) is taxable above Rs 50,000.
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