Income tax


Hi,

I just want to know if  cash received from Son in law ( who is working in USA ) is tax free. Is it considered as gift ?

If yes, what is the limit, per year, upto which it is free from IT. I am already an IT payee.

Please also let me know IT section under which this falls.

Thanks in advance.

 
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Advocate

   Not taxable refer

 

   section 56(2)(vii)     

 

 
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Thank you Sir.

 
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ADVOCATE

The 'gift' is not income if it is received from a 'relative'.

For this purpose, 'Relative' is defined as under:

 (e) "relative" means,—

(i)   in case of an individual—

(A)  spouse of the individual;

(B)  brother or sister of the individual;

(C)  brother or sister of the spouse of the individual;

(D)  brother or sister of either of the parents of the individual;

(Eany lineal ascendant or descendant of the individual;

(F)  any lineal ascendant or descendant of the spouse of the individual;

(Gspouse of the person referred to in items (B) to (F); and

(ii)  in case of a Hindu undivided family, any member thereof;]

As the donor in your case is the spouse of your lineal descendant, the 'gift' is not taxable as income in your hands.

 
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ARTICLE ASSISTANT

any gift received in kind/money is not a taxable

 
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