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Income tax sec. 56(2) (vii)

rakesh kumar sharma (36 Points)

26 December 2015

kya nana aur nani se prapt gift under section 56(2)(vii) me exempt hota hai.

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13 Replies

Sonu Goenka (Professional) (62 Points)
Replied 26 December 2015

As per Section 56 (2)(vii) "relative" means,—

(i) in case of an individual—

(A) spouse of the individual;

(B) brother or sister of the individual;

(D) brother or sister of either of the parents of the individual;

(E) any lineal ascendant or descendant of the individual;

(F) any lineal ascendant or descendant of the spouse of the individual;

(G) spouse of the person referred to in items (B) to (F);

(ii) in case of a Hindu undivided family, any member thereof

So, maternal grand parents does not comes under defination of relatives, hence gift received from them would be taxable if value of the gift exceed Rs. 50,000/- in a year.

Nikhil Kaushik (Fellow CA) (84891 Points)
Replied 26 December 2015

it is covered under point E of the definition shared by CA Sonu. maternal grand parents are the lineal ascendents of an individual....

CA SHAH DILEEPKUMAR (PARTNER) (144 Points)
Replied 27 December 2015

Mr. Sonu CA is correct and maternal grand parents are not covered as relative as specified under the provsions of 56(2)(vii)(F) of the Act. Therefore any amount of gift which exceeds Rs. 50000/-, the whole amount is taxable.

Jaspal Singh (Practising CA) (321 Points)
Replied 27 December 2015

Agree with mr. Nikhil

kantilal swami (ipcc 1) (21 Points)
Replied 27 December 2015

It is not covered under defition of relative . So exceeding 50000 whole amount will be taxable

CA Vap Patel (Practice) (1205 Points)
Replied 27 December 2015

List of Male Donors	List of Female Donors
Father (Papa or Pitaji)	Mother (Maa or Mummy)
Brother (Bhai)	Sister (Bahin)
Son (Beta or Putra)	Daughter (Beti or Putri)
Grand Son (Pota or Potra)	Grand Daughter (Poti or Potri)
Husband (Pati)	Wife (Patni)
Sister’s Husband (Jija)	Brother’s Wife (Bhabhi)
Wife’s Brother (Sala)	Wife’s Sister (Sali)
Husband’s Brother (Dewar)	Husband’s Sister (Nanad)
Mother’s Brother (Mama)	Mother’s Sister (Mausi)
Mother’s Sister Husband (Mausa)	Wife’s brother’s wife (Sala Heli)
Father’s Brother (Chacha or Tau)	Father’s Brother’s Wife (Chachi or Tai)
Father’s Sister’s Husband(Fufa)	Father’s Sister (Bua)
Grand Father (Dada, Pardada)	Grand Mother (Dadi, Pardadi)
Daughter’s Husband (Jawai)	Son’s Wife (Bahu or Putra Vadhu)
Spouse Father (Sasur)	Spouse Mother (Sas)
Spouse Grand Father (Dada Sasur)	Spouse Grand Mother (DadiSas)
Brother’s Wife (Bhabhi)	Mother’s Brother’s Wife (Mami) Husband’s Brother’s Wife (Devrani or Jithani)

This are the people from whom you can take gift and it will be exempt for tax purpose also. But as said above Any Lineal ascendants or descendants of the spouse of the individual is also included in the list of relatives. Hence Gift from Nana and Nani is also exempt from tax

Akhilesh Shah (Lecturer) (22 Points)
Replied 28 December 2015

Mis interpreted by CA Vap Patel. Lineal ascendant or descendant of spouse means life patner and not LA or LD of Mother of Individual. Nana, nani not covered.

rajesh behl (accounts manager ) (63 Points)
Replied 28 December 2015

Agreed with Mr shah

rajesh behl (accounts manager ) (63 Points)
Replied 28 December 2015

Agreed with Mr shah

CA Prateek Garg (CA in Practice) (1444 Points)
Replied 28 December 2015

Dictionary Meaning

Ascendant means “Someone from whom one is descendant” and descendant means “a person considered as descendant from some ancestor or race”.

Lineal means “in a straight unbroken line of descent from parents to child”. Therefore, lineal descendant means in a straight unbroken line of descent from parent to child.

Now a question may arise, whether an individual can be consider as descendant of father only or can be consider as descendant of mother as well? Since the word “parent” is used, the term will include both, father and mother as well, and so on.