Gift tax query
V.Srikantan
(Querist) 28 April 2015
This query is : Resolved
Please clarify the following –
As per Indian Tax laws, does gifts received by me- Indian resident - from my cousin ( her mother and my mother are own sisters) attract gift tax at my end?. I was told that they will come under my lineal ascendants or descendants and hence gift tax is not payable. Will you please clarify?.
There is a difference of opinion on this issue – namely one tax consultant said NO gift tax is payable and the other one said tax is payable as cousin is not considered part of lineal ascendants or descendants . So I will be thankful for your esteemed view.
P. Venu
(Expert) 29 April 2015
Pl. raise the query with caclubofindia.
Rajendra K Goyal
(Expert) 29 April 2015
May visit following link to know about gift tax.
http://taxguru.in/income-tax/detailed-analysis-gifts-taxation-income-tax-act-1961.html
R K JAIN
(Expert) 01 May 2015
This gift is not allowed under Income Tax Act, off course you can take the gift form sister of your mother(Mausi)but not from daughter of Mausi. Daughter of Mausi is not considered as linen ascendant and descendant.
T. Kalaiselvan, Advocate
(Expert) 02 May 2015
Hope the clarification made by expert Mr. Jain solves the problem of the author?
Vineet
(Expert) 05 May 2015
The gift received from your cousin will be added to your income as she is not a specified relative as defined u/s 56 of the Act. You can plan a tax free gift by first cousin gifting to her mother and then your Masi gifting it to you.
