K. Lal (Nil) 07 August 2012

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.

A V Vishal (Advocate) 07 August 2012

Not taxable refer

section 56(2)(vii)

K. Lal (Nil) 07 August 2012

Thank you Sir.

R RAJAGOPALAN (ADVOCATE) 15 August 2012

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;

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

(E) any lineal ascendant or descendant of the individual;

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

(G) spouse 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.

Ganesh babu (ARTICLE ASSISTANT) 04 September 2012

any gift received in kind/money is not a taxable