15 lacs gift received from relatives in the f.y.17-18 is it

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Anand

Anand (Querist)

10 April 2018 Respected Sir,
Gift received from relatives in the f.y.17-18 for a sum of Rs.15 Lacs. Is it taxable?

CA NEERAJ SHARMA

CA NEERAJ SHARMA (Expert)

10 April 2018 GIFT FROM RELATIVE IS EXEMPT FROM TAX.

Following persons would be considered as relative
(a) Spouse of the individual;

(b) Brother or sister of the individual;

(c) Brother or sister of the spouse of the individual;

(d) Brother or sister of either of the parents of the individual;

(e) Any lineal ascendant or descendent of the individual;

(f) Any lineal ascendant or descendent of the spouse of the individual;

(g) Spouse of the persons referred to in (b) to (f

RAJA P M

RAJA P M (Expert)

10 April 2018 Check out the relatives definitions as following... Otherwise the GIFT is taxable exceeding 50k***

Let us understand the definition of relatives as per the Income Tax Act, for gift and under FEMA.

As per the Income Tax Act: Section 2(41), “relative”, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual.

As per Gift tax:Any ‘Relative’ means as per Section 56(2),

Spouse
Brother or sister of individual or of spouse
Brother or sister of either parents
Lineal ascendant/descendant of individual or of spouse
Spouse of relatives mentioned in 2. to4.
As per FEMA: FEMA relies on the definition in the Companies’ Act. As per section 2 (77) of the Companies Act 2013, “Anyone who is related to another if

they are members of a Hindu Undivided Family (HUF); or
they are husband and wife ; or
as may be prescribed. The Rule 4 of the Companies (Specification of definitiondetails) Rules, 2014 lists the relatives as:
Father, Mother
Son, Daughter and their spouse
Brother and Sister

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