WHETHER GIFT RECEIVED FROM FATHER IN LAW (WIFE'S FATHER) IS EXEMPT UNDER INCOME TAX ACT.
Gifts from relatives
Ashwini (ARTICLE ASSISTANT ) (200 Points)
23 September 2016
8 Replies
Saloni
(Final student)
(40 Points)
Replied 23 September 2016
gift received from relative is exempt under income tax
here relative means
In case of individual
(i) spouse of individual
(¡¡) brother or sister of the individual
(¡¡¡) 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 descendent 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)
father in law comes under the clause ( v) i.e. any lineal ascendant of spouse of individual ..
hence gift received from father in law is exempt .
here relative means
In case of individual
(i) spouse of individual
(¡¡) brother or sister of the individual
(¡¡¡) 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 descendent 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)
father in law comes under the clause ( v) i.e. any lineal ascendant of spouse of individual ..
hence gift received from father in law is exempt .
supriya
(Student CMA)
(58 Points)
Replied 23 September 2016
Yes gift received from Father in Law is exempt.
FCA surbhi jain
(FCA)
(997 Points)
Replied 23 September 2016
Father in law is a relative u/s 56. Thus gift from him is exempt.
sravan
(ca)
(28 Points)
Replied 24 September 2016
yes
Gift from father in law is exempt u/s 56(2)(vii)
RITESH ATREJA
(STUDENT)
(35 Points)
Replied 25 September 2016
is gift deed is required for accepting gift ?
Saloni
(Final student)
(40 Points)
Replied 26 September 2016
gift deed is an agreement which is used when any immovable or movable property is gifted by one person to another without consideration .
As per law every gift should be supported by gift deed so that if any query arises from income tax department or any other act , genuineness of transaction can be proved .
However in practical life ..For some properties like cash , cheque , or some other movable properties it is not possible everytime to make gift deed. so a single simple letter can be made instead of deed.
but when amount gifted is huge or gift in some form like immovable property , vehicles or other properties , it is necessary to make gift deed so that after gifting of this valid title can be passed. ....
As per law every gift should be supported by gift deed so that if any query arises from income tax department or any other act , genuineness of transaction can be proved .
However in practical life ..For some properties like cash , cheque , or some other movable properties it is not possible everytime to make gift deed. so a single simple letter can be made instead of deed.
but when amount gifted is huge or gift in some form like immovable property , vehicles or other properties , it is necessary to make gift deed so that after gifting of this valid title can be passed. ....
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