Gifts received by son-in-law from the wife's parents are taxable as this relation does not come under the specified close relatives in the income tax act. Following is the list of relations which are considered as “relatives” for the purpose of exemption from gift for any amount:-

1. Your spouse

2. Your brother or sister

3. Brother or sister of your spouse

4.Brother or sister of either of your parents

5.Any of your lineal ascendants or descendants

6.Any lineal ascendant or descendant of your spouse

7.Spouse of the persons referred in above points

Gifts received in marriage by son in law from parents in law are taxable as it does not fall in the exempted category. However gifts received by daughter in law from parents in law are exempt from tax.