Can a real nephew (Real Brothers son) settled in USA gift money to his real uncle( Chacha) by way of remittance through Western Union/ Wire Transfer for the reconstruction/renovation of the family house. Is the money received Tax free or Taxable in income TAx ?If tax free under which section of the income tax Act?
Menu
Gift
Replies (4)
Gift from relative as defined under income tax act is tax free us 56. in yourcase it should be exempt. Other views solicited.
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).
nephew is not included under the definition of relative. so i am afraid that it would be taxable.
views of others are welcome
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.
Recent Topics :
- Sale of shares in indian company by a non resident
- Difference in TIS
- GSTR-9C Upload Status Error Occured
- “Income Tax Implications of Company-Related
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
- Difference between AIS and 26AS data.
Related Topics :
CAclubindia
