Valuable guidance on gift

Q 1: By virtue of Section 56(2), Gift from relatives is not taxable.

Following is the list of relations which are considered as “relatives” for this

• Your spouse
• Your brother or sister
• Brother or sister of your spouse
• Brother or sister of either of your parents
• Any of your lineal ascendants or descendants
• Any lineal ascendant or descendant of your spouse
• Spouse of the persons referred  in above points

So when husband gifts any amount to wife (relative)the GIFT is no taxable.But when she invests that money and if any income is generated, it will be clubbed with husband income.

Q 2:Gift from grandfather to minor grand son under guardianship of his (Minor's) mother. Income of a minor child will be added to husband or Wife’s Income depending on whose total income is greater.64(1A)

Q 3: Gift from father to son or daughter in law. Both are your relatives, so the GIFT will not be taxed. The income of daughter in law from the investment of gift will be clubbed with your income 64(1)(vi)

Q 4: There is no limit on how much amount can be gifted and how many times in the life time as long as the amount to be gifted is offered to tax by doner( the gift is white money)