Lineal ascendant of spouse, Income Tax

[Roopam Gupta]

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

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

In my view it will be covered.

[Ram Krishna Gupta]

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

[Ram Krishna Gupta]

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.

[Ram Krishna Gupta]

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.

[SANJAY DAVE]

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.