Gift to brother's spouse

[NEERAJ BHUTORIA]

i have given a gift of Rs 100000 to me elder brothers wife. whether the same is taxable or not. kindly advise

[DINESH AGGARWAL]

Dear Mr. Neeraj,

Brother's Wife is not a relative as per definition of Relative given under the Income Tax Act, 1961.  Hence in my opinon, the whole amount will be treated income of receipient (Brother's Wife).

 

Regards

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[Bakul Gandhi]

The gift is not taxable in the hands of brother's wifeas she is a relative as defined in Sec 56(2)-

 

1.......................................

2-  brother or sister of such indiividual   3.................................4................................5...........................6...............................and 7 spouse of the individual referred in above 2 to 6. Thus brother's wife being spouse of person under item 2 is covered under item 6

[Sunil K. Jain]

Dear Neeraj

As per section 56(v)(a) of the income tax act, and vide expalanation (ii) and (vii) there of ; brother's wife is covered under the definition of "relative". The same is therefore not taxable.

AI Summary

Gift of Rs 100,000 to brother's wife exempt from tax under Section 56(2) of Income Tax Act. A participant inquired whether a gift of Rs 100,000 given to their elder brother's wife is taxable. One respondent stated that the brother's wife is not considered a relative under the Income Tax Act, 1961, thus making the amount taxable for the recipient. However, two other respondents clarified that under Section 56(2) of the Income Tax Act, the brother's wife is indeed classified as a relative, which exempts the gift from being taxable.