Money Gifted to Parents and In-Laws – How is it taxed under Gift Tax and Income tax Act.

Forums Tax Planning Money Gifted to Parents and In-Laws – How is it taxed under Gift Tax and Income tax Act.

Money Gifted to Parents and In-Laws – How is it taxed under Gift Tax and Income tax Act.

Under Gift Tax Laws, can a Daughter-in-law OR Son-in-law give gifts by way of amounts in the form of NSC/Sr. Citizen Scheme/Bank FDs to their respective Mother / Father In Laws? If yes, is it taxable at the hands of the respective In Laws/Parents or Not – under Gift tax laws. Also what is the tax implication of interest coming from such govt securities or bank fixed deposits. Please advised… Thanks Shobha

Profile photo of Shobha Asked By: Anonymous 2 replies 0 helpful answers Last Updated: 7 months ago
  • Profile photo of ShobhaAnonymous

    Under Gift Tax Laws, can a Daughter-in-law OR Son-in-law give gifts by way of amounts in the form of NSC/Sr. Citizen Scheme/Bank FDs to their respective Mother / Father In Laws? If yes, is it taxable at the hands of the respective In Laws/Parents or Not – under Gift tax laws. Also what is the tax implication of interest coming from such govt securities or bank fixed deposits. Please advised… Thanks Shobha

  • Profile photo of Shreya OturkarShreya Oturkar
    Moderator

    As per Income tax Act, gift to specified relatives are exempt from tax. In the specified relatives, in-laws are covered. Hence, gift given to in-laws are exempt from tax in their hands. Further, whatever income earned on the amount gifted to in-laws, will be taxable in their hands.

  • Profile photo of sunilsunil
    Participant

    What about in reverse case say in-law gifts to daughter in-law. Also please explain in the case of parents cash gift to son/daughter.

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