CCI Online Coaching    |    x


Gift from nephew/niece

Student



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?

 
Reply   
 
practicing Chartered Accountant


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

 
Reply   
 
Student



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.

 
Reply   
 
Chartered Accountant



 
Reply   
 
CA final student



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.

 
Reply   
 

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.

 
Reply   
 
TAX CONSULTANT



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.

 
Reply   
 

LEAVE A REPLY

Your are not logged in . Please login to post replies

Click here to Login / Register  



 


Search Forum:





close x