Please Help: test your knowledge
Posted Date : 28-Oct-2013 , 08:39:39 pm | Posted By Ramesh Jaju
Dear All,
Kindly guide me on the following issue
Will any tax liability arise if Mrs."Z" sister of Mr."X" give cash or kind (amounting to Rs.10 lacs+ ) as GIFT to Mrs."X".
Kindly provide me with relevant provisions and / or case laws as per income tax act.
Note - Mrs."X" is wife of Mr."X" and all the above three share natural relationship.
Mrs. "Z" (Donor) and Mrs. "X" (Donee).
Kindly guide me on the following issue
Will any tax liability arise if Mrs."Z" sister of Mr."X" give cash or kind (amounting to Rs.10 lacs+ ) as GIFT to Mrs."X".
Kindly provide me with relevant provisions and / or case laws as per income tax act.
Note - Mrs."X" is wife of Mr."X" and all the above three share natural relationship.
Mrs. "Z" (Donor) and Mrs. "X" (Donee).
Category : Income Tax | Answers : 2 | Comments : 1 | Hits : 207
Answers
Answer By: shankygarg
The provisions of Section 56(2)(vi) are applicable to the taxation of gifts in excess of Rs. 50,000 in a financial year in the aggregate, for gifts received from non-relatives.
Thus, any gift from relatives of any amount during the financial year is completely exempt from tax. Here,Mrs."X" is relative of Mrs."Z"(Spouse of brother & sister is also a relative).
Thus, any gift from relatives of any amount during the financial year is completely exempt from tax. Here,Mrs."X" is relative of Mrs."Z"(Spouse of brother & sister is also a relative).
Answer By: shankygarg
The provisions of Section 56(2)(vi) are applicable to the taxation of gifts in excess of Rs. 50,000 in a financial year in the aggregate, for gifts received from non-relatives.
Thus, any gift from relatives of any amount during the financial year is completely exempt from tax. Here,Mrs."X" is relative of Mrs."Z"(Spouse of brother & sister is also a relative).
Thus, any gift from relatives of any amount during the financial year is completely exempt from tax. Here,Mrs."X" is relative of Mrs."Z"(Spouse of brother & sister is also a relative).
Comments
deepak
30-Oct-2013 , 11:37:57 amRelative means:- 1)spouse of an individual 2)Brother & sister of Individual 3)Brother or sister of the spouse of the individual 4)Brother & sister of the either of the parents of the individual With reference to third point i.e "brother & sister of the spouse of the indidual" covers and shows relations with the assessee, and therefore any amount recvd above 50000 from related party will be exempt