Gift to Daughter of Spouse's Sister - Very Urgent

[Guest]

Whether Daughter of Sister in law (Sali) comes under the definition of relative for Gifting purpose as per the Act ?

 

Very Urgent

Thanks & Regards

[CAGOPALJI AGRAWAL]

No, she will not as per explanation to section 56 (2)(v).

[Guest]

Thanks A lot Sir.

But as per the Hindu terminology , the relation is of Mausa .So as per the link given below the gifting of Mausa to his/Spouse's Bhatija/Bhatiji is covered under definition of relative .Please refer the link as the detailed analysis is by an eminent expert in the field of Income Tax:http://www.itatonline.org/articles_new/index.php/law-on-taxability-of-gifts-a-comprehensive-analysis/.

So it seems that it is covered under the definition of relative.Kindly let me know your view after reading the text in the link.

Thanks

AI Summary

Definition of relative: whether spouse's sister's daughter qualifies affects gift tax treatment under the statutory Explanation. A practitioner advised that the daughter of a spouse's sister does not qualify as a relative under the Explanation to section 56(2)(v) for gift-tax purposes; the enquirer disputed this, invoking Hindu kinship terminology (mausa) and a secondary commentary suggesting such familial relations may be covered, resulting in an unresolved difference of interpretation.