Tax implication -gift of residential property

There is no tax payable either for Mr. A or his mother-in-law. LTCG will arise in the hands of mother-in-law when she decides to sell this flat.

Yes, Mr. Mihir is right, there is no clubbing of Income as mother-in- Law is not relative as per the clubbing of Income rules. So, A wouldn't liable for taxes on further income that arises on the said property.

there are not any tax implications of this transaction for A. No LTCG deemed to accrue to him on this transfer. He doesn't required to indicate this transaction in his ITR2 as There is no column in the House Property portion of ITR to indicate this transaction.  he will not have to mention it in CG portion any where.  tax implication for Mother-in-law will arise when she will sell property. Mother in law can show this this transaction in ITR in EI sheet as Gift of Immovable property from relative.