Exemption for gift receipts

P.SHANMUGASUNDARAM (Querist) 27 January 2016 This query is : Resolved
One of my Client A got married with B. The A and B got a male child C. After birth of C, the B has expired. The A has again married D after death of B. Then A and D got female child E. Now the children are adults. The C - brother wants to give a Gift of Rs.3,00,000/- to E - sister. Even though the C is a brother of E, they have different parents, only the father is same but the mother is different. Let me know whether the Gift given by brother-C to his sister-E is exempt u/s 56 2(vi) or is it taxable in the hands of E as GIFT not received from specified relative. Kindly clarify

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Anirudh (Expert) 28 January 2016
In order to avoid confusion and soubt, ask C to give the gift to his father A. Then A can give the amount as gift to his daughter E. By this method, exemption u/s 56 2(vi) will be available. To ensure that the father gives the money to E, first the father should be asked to give a cheque to E, then C to should give the cheque to A.

Rajendra K Goyal (Expert) 28 January 2016
If it is not academic query, agree with the practical solution from expert Anirudh.

Guest (Expert) 28 January 2016
Better Discuss it With CA Club of this Same Forum for a Practical Reply from Professional CAs.

ramaraju ramaiah (Expert) 04 February 2016
Here mother is same father is different C made gift to E taxable under gift act in the hands of E as other sources of income .He is not comes under accendents and decendents because of father is different.

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