gift from nephew

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UTTAM LAL BASAK (Querist)
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29 March 2011 if an individual receives a gift of Rs.5,00,000 from his nephew by cheque then whether it is chargeable to tax or not

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 March 2011 Gift from relative is exempt from Tax. But Nephew do not fall under relative as defined u/s 56(2)(vii). So the amount of Rs 500000/- will be fully taxable.

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)

https://www.caclubindia.com/share_files/synopsis-of-taxability-of-gift-27904.asp

For more details see file from above link.

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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29 March 2011 gift from non relative will be chargeable to tax ??

in the above case, i hope it is exempted from tax

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 March 2011 Vivek Gift from Relative as per definition given above will be fully exempt from Tax.
Gift from non relative are exempt upto Rs 50000/-. So in this case gift will be fully taxable. Hope karne se kuch nahi hoga.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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29 March 2011 https://www.caclubindia.com/share_files/synopsis-of-taxability-of-gift-27904.asp

For more details please check out file from above link.

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