Gift tax

Siddharth (Querist) 16 April 2012 This query is : Resolved
Hi,

I have gone through the forum and found out that if a gift is given from mother in law to daughter in law there is not tax on whatever the cash amount would be. However I want clarification on one point. Does this amount become a part of DIL's income and will be taxed under income tax or is it that the income will not be considered as part of her income.

Thanks in advance for the reply

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Shonee Kapoor (Expert) 17 April 2012
No it is not her income for the purposes of Income Tax.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

Vineet (Expert) 18 April 2012
The gift amount per se is not income in the hands of Daughter in Law.

However any income arising out of the said gifted sum (i.e. interest, property income, investment income etc) shall be clubbed in the hands of mother in law.

C. P. CHUGH (Expert) 18 April 2012
Rightly said by Mr Vineet,
Clubbing PRovision would apply to the extent of any income arising out of transfered property.

Nothing more to add.

Regards
C P Chugh
cpcservices@gmail.com

prabhakar singh (Expert) 20 April 2012
Gift so received by daughter in law is not taxable as income in her hands.So it would not be clubbed as income in her income of relevant financial year.

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