Tax consequences

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When a nephew gifts a substantial amount, such as ₹1 crore in property or money, to his uncle, the tax implications fall on the uncle. Gifts from a nephew or niece are not considered gifts from a 'relative' for tax purposes, meaning the uncle will be liable for tax on the received amount at his slab rate. The nephew or niece making the gift incurs no tax liability, and capital gains tax does not apply to them in this scenario.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

03 January 2025 If an individual gives a gift around 1 crore to his uncle (property or money),
then what are the tax consequences in the hands of such individual and his uncle both?

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

03 January 2025 Gift received by any individual from nephew or niece will not be considered as gift received from “Relative” As it is received by uncle/aunty from Nephew / Niece, it will not be tax free. Uncle will be liable for tax at slab rate. No liability over Nephew/Niece.

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Suresh S. Tejwani

Suresh S. Tejwani (Querist)

03 January 2025 IS CAPITAL GAIN WILL ATRACTED IN THE HAND OF SUCH NEPHEW/NIECE..??

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

03 January 2025 No.

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