Gift

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Saliq Ansari (Querist)
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09 September 2011 Are Cash gift from relative is exempt.

If yes, then who all are relative for this purpose & what is maximum amount,

regards

CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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09 September 2011 The provisions of section 56(2)(vii) inserted w.e.f. 1-10-2009 are not applicable in case the specified properties are received from a relative or in other prescribed circumstances.

The term “relative” as defined includes spouse, brother, sister, brother or sister of spouse, brother or sister of either of the parents, any lineal ascendant or descendant of the individual or of the spouse and spouse of any of the persons mentioned above

Regards
Ankit Jain

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CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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CA Anjali Aswal

CA Anjali Aswal (Expert)
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09 September 2011 Agree with C.A. Ankit jain

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 September 2011 Yes Cash Gift from relatives is fully exempt.

Gift to relatives is exempt in the hands of recipient.
Relatives u/s 56(2)(vii) from whom Gift is permissible under Income Tax Act, 1961

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

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

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

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

(vii) spouse of the person referred to in clauses (ii) to (vi)

You can see the list of relations that fall under definition given above from below link---

https://www.caclubindia.com/forum/relatives-u-s-56-2-vii-from-whom-gift-is-permissible--98674.asp

Apart from this any amount of gift received on occasion of marriage is fully exempt from tax. Also gift received upto Rs 50000/- from persons other than relative is exempt.

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