Gift tax laws and definition of relative
RAMESH
(Querist) 10 April 2013
This query is : Resolved
My father died intestate , leaving behind myself , my two sisters, my brother's son ( Brother and his wife have expired ). Since I was either the nominee or joint holder in all his bank accounts , I have received the proceeds from the bank in my name . To be fair to all my siblings , and son of my sibling , I propose to gift my sister's and my brother's son a certain sum of moneny. My sister's or my brother son will not make any legal claim and have left it to my wish. I want to know the Income Tax implication of gift to my sister's and my brother's son.
"The query is GIFT TAX liability if I gift to my sister's and by brother's son. Any documents to be executed between us, from TAXATION angle?
Devajyoti Barman
(Expert) 10 April 2013
Please consult a tax practitioner of CA.
Raj Kumar Makkad
(Expert) 10 April 2013
There is no question of gift tax in the given case as the gift has been given by them to you out of love and affection but ensure it through cheque so as to avoid any future complication.
CA Ayush Agrawal
(Expert) 11 April 2013
Dear Author,
There is No Concept of Gift Tax Exist Now in Our Indian Law.
If any gift taxable then it will come u/s 56 of income tax act only.
and whatever you have mentioned the relation, this will be exempted transfer u/s 56, because definition of relative covers
Forthe purpose ofthis, ‘relative’means: ‐
(a) spouse ofthe Individual;
(b) brother orsister ofthe individual;
(c) brother orsister ofthe spouse ofthe individual;
(d) brother orsister ofthe either ofthe parents ofthe individual;
(e) any lineal ascendant or descendant ofthe individual;
(f) any lineal ascendant or descendant ofthe spouse ofthe individual;
(g) spouse ofthe person referred to in clause (ii)to (vi).
