Gift

The Explanation to Section 56(2)(vi) provides that the expression "relative" means: ­

• Spouse of the individual;
• Brother or sister of the individual;
• Brother or sister of the spouse of the individual;
• Brother or sister of either of the parents of the individual;
• Any lineal ascendant or descendant of the individual;
• Any lineal ascendant or descendant of the spouse of the individual; and
• Spouse of the person referred to in clauses (ii) to (vi).

1) Yes it is taxable as stated by Pooja unless it is below Rs. 50,000. Nephew is not considered in the category of relative in Section 56(2)(vi).

2) But if you can transfer it to someone who feet's in the category of Relative as per section 56 than it won't be taxable. eg. Grand/great father/mother, His own father/mother, Brother /Sister, wife's borther/sister some one must be in India right.. :) :)

Gift from relative is not taxable  but nephew is a not relative under section 56 (2) (iv)

so it is taxable.