Lineal ascendant of spouse

[Asked by Guest]

Hi, Could you confirm please that my maternal Grandfather (Nanaji) come under Lineal ascendant of spouse category as per Income Tax rules. because he gifted one shop to my wife.

Waiting for reply.........

Regards

[DR.MARIAPPAN GOVINDARAJAN]

In my view it will be covered.

Hello Sir,

Thanks for your reply. We received notice few days before from IT department that they don't consider my maternal grandfather and my wife in Lineal Ascendant of spouse category. They are asking for law number/Income Tax rule no. for the same.

Could you please help me to know the law no/ Income Tax rule no. for the same or any other source from where I can get this information.

Looking forward for your help.

Thanks

Dear Sir,

Kindly advise that in which law number/Income Tax rule no. my maternal Grandfather (Nanaji) come under Lineal ascendant of spouse category because I have to answer the notice of IT dept.

Regards

[Ganeshan Kalyani]

Refer Section 56 of Income Tax Act 1961.

Thanks sir for reply but as discussed with IT officer he told me that in section 56 of Income tax act 1961 there is never mention that gift received from husband's nanaji is tax free.

He wants law number/Income Tax rule no.with clause number for the same in which it may be clearly mention that gift received from husband's Nanaji is tax free.

I told him that I lived with my Nana ji from last 25 years because my parents gets divorced & my Nanaji is taking care of me & my mother since year 1989.

Kindly help other wise the told me that IT dept. fine me and will charge Income tax with fine.

Waiting for your kind advice & your very big help.

[K.S.AIYAR & CO.]

For section 56 (2) An individual receiving gifts from "lineal ascendant of spouse" means it will be applicable to A when A's spouse's parents/grandparents/great grand parents give gift to A.

In the present case your lineal ascendants will be your father/ grand father/ great grand father. Your mother's father will not be your lineal ascendant. So in my view your wife receiving gift from your mother's father will not fall under exempted category.

AI Summary

Lineal ascendant of spouse: gifts from a spouse's parents or grandparents may be exempt under income tax provisions.
The discussion concerns whether a gift to a wife from her maternal grandfather qualifies for the income tax exemption for gifts received from a "lineal ascendant of spouse." Commenters cite the gift provision and describe "lineal ascendant" as parents, grandparents and great grandparents of the spouse, but disagree on whether a maternal grandfather qualifies in the contested notice, with the tax department requesting explicit statutory clause citation.