You have a question about house rent allowance, medical allowance, or even a general tax query.

Here's where we step in with our experts, Relax With Tax.

Got a question for Relax With Tax? Please write to us!  

My dad's brother wants to gift me a property.

Will I need to show that as income?

Will my uncle have to pay gift tax?

- Vishwas Langer

As the gift being made is in kind and as a relative is making it, there would be no impact of Gift Tax on such a transaction.

Do read 'Points to note on gift tax' which appears at the end of this column.

• Beware of expensive gifts. You may be taxed!
• Are gifts from employers taxed?                      

I gave Rs 3,00,000 to my wife as a gift. She invested this amount in the post office monthly income scheme and earns Rs 2,000 per month as interest.

Does this interest income need to be clubbed with my income for computing income tax? Or will it be taxed in her hands?

Also, do the same principles apply if the recipient of the gift is my mother instead of my wife?

- Viswanath K V

This interest income of Rs 2,000 will be clubbed with your income for computing income tax.

If the recipient of the gift is your mother, then clubbing provisions will not apply. But care needs to be taken that the gift is irrevocable and you should not have any future interest in the same.

Points to note on gift tax

Got a question for Relax With Tax? Please write to us!

Note: Questions may be edited for brevity. Due to the tremendous response, all queries will not be answered.

Disclaimer: While efforts have been made to ensure the accuracy of the information provided in the content, rediff.com or the author shall not be held responsible for any loss caused to any person whatsoever who accesses or uses or is supplied with the content (consisting of articles and information).

Illustration: Dominic Xavier