Gifts in income tax

Others 174 views 4 replies

If brother in law gifts share to his sister in law and she gifts those shares to her son. Is this attract any taxes in income tax. 
in simple words. Mere chaha ne meri mummy ko shares gift diye aur meri mummy ne same shares mujhe gift kar diye. 

Replies (4)

Not taxable, both transactions are exempt u/s. 56(2)(x) IT act.

Not direct blood relations..
NOT ACCEPTED

There is nothing like this in IT act

Explanation.—For the purposes of this clause, "relative" means—

   (i) spouse of the individual;

  (ii) brother or sister of the individual;

 (iii) 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 descendant 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);


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