Question

S.56 (2) (vii), w.e.f. 1.10.2009, deems the following as income taxable in the hands of the recipient:

• gift of money or certain property, or
• transfer of certain property – below “Fair Market Value”

One of the Exceptions is a Transaction between relatives, as defined in that section.

Let us say that there is a Gift from R1(Brother) to R2 (Brother), and from

R2 to His Wife’s Brother (R3), whether s.56 (2) (vii) will be applicable?