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

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Anand

Anand (Querist)
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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)
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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)
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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