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Discussion > Students >

Gift from nephew/niece

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[ Scorecard : 364]
Posted On 08 July 2008 at 12:12 Report Abuse

Question on Income tax:

Mr. A gets a gift of rs. 2 lakhs from his niece and rs. 4 lakhs from his nephew in the financial year 2007-2008. Whether these gifts are taxable?

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praveen reddy
practicing Chartered Accountant

[ Scorecard : 55]
Posted On 08 July 2008 at 12:26

gifts from relatives are exempt. refer sec 56 of the IT act


[ Scorecard : 364]
Posted On 08 July 2008 at 12:54

But does niece and nephew qualify to be a relative???? Niece and nephew are not lineal descendants. Also the definition does not say specifically niece or nephew.

Late CA Sampat Jain
Chartered Accountant

[ Scorecard : 4737]
Posted On 08 July 2008 at 13:17

anirudh dash
CA final student

[ Scorecard : 32]
Posted On 08 July 2008 at 13:35

as per sec 56 nice nd nephew is not a relative in that case whole amt is taxable in F.Y. 2007-08 under income from other source head.

CA Bhavesh Patodiya

[ Scorecard : 29]
Posted On 08 July 2008 at 15:03

It is taxable in the hands of Mr.A

b coz niece & nephew is not a relative of Mr.A as per section 56(2)(vi) of The Income Tax Act,1961.


[ Scorecard : 66]
Posted On 08 July 2008 at 15:30

As per S56(2)(vi) Nephew and Niece are not covered under relatives.  They are not a Lineal ascendant or descendant.  So the hole amount is taxable under Income from other sources.

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