Opinion Of Eminent Legal Luminaries On Controversial Issues

Whether Gift From Nana / Nani Liable To Tax In The Hands Of Child?

QUERY: Gift given by Nana or Nani (i.e. mother side of assessee) is taxable or not? Whether Nana / Nani is covered under the definition of ‘Relative’? Whether lineal ascended / descended is also covered by mother side of assessee?
ANSWER: As per Explanation to section 56(2)(vii) “relative“ means 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 individuals.

(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)

The term “lineal descendants” include all descendants and is not restricted to male descendants. [see Jagnnath Vs. Kunja Behari (AIR 1929 PC 162)]. So lineal ascendant would include an ascent or in direct line of ascent of a child which includes Nana / Nani (i.e. parents of mother)
EXPERT:
SECTION(S): ,
GENRE:
CATCH WORDS:

One comment on “Whether Gift From Nana / Nani Liable To Tax In The Hands Of Child?
  1. tara devi says:

    Gift given by Nana or Nani (i.e. mother side of assesses) is taxable or not? Whether Nana / Nani is covered under the definition of ‘Relative’?

    where is answer for this ?

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