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gift exempt from income tax

Satish Kavitake (395 Points)

11 July 2018

sir, gift from father to daughter is exempt from income tax? pl provide income tax section reference

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2 Replies

prasad Nilugal (3924 Points)
Replied 11 July 2018

Gift received from relative is not taxable in the hands of receipeint . please go through section 56/ 2 of the income tax act 1961

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 11 July 2018

Yes... The gift is tax free.

Please go to refer sec 56(2) of IT act....

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As per the Income Tax Act: Section 2(41), “relative”, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual.

As per Gift tax:Any ‘Relative’ means as per Section 56(2),

SpouseBrother or sister of individual or of spouseBrother or sister of either parentsLineal ascendant/descendant of individual or of spouseSpouse of relatives mentioned in 2. to4.