Lock in 2 Yrs of CAclubindia Pro Benefits & Save Rs 499. Subscribe Now!

Gift received from Sister

1053 views 2 replies

Manoj Punjabi

Accountant

383 Points Posted on 20 August 2025

Dear Members, please guide me on this.

Gift given by Sister to her Brother Rs.51000.

Should Brother declare it in IT returns?

Is it taxable?

Where to declare it in ITR3?

Replies (2)

Quick Summary

A brother received a gift of Rs. 51,000 from his sister and is seeking guidance on whether it needs to be declared in his IT returns and if it's taxable. Gifts from specified relatives are generally exempt under Section 56(2)(x) of the Income Tax Act and should be declared under Schedule EI as exempt income. While not taxable, a gift deed is recommended as documentary evidence.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212347 Points Posted on 21 August 2025

Gift from sister comes under exempt income as per sec. 56(2)(x) IT act. It may be declared under Schedule EI.

P.N. ::: Schedule EI has defect, waiting for glitch removal by developer; so if you use Schedule EI, it will not be uploaded.

prasad Nilugal

GST Practitioner & Accounts

15136 Points Posted on 21 August 2025

Gift received from reletive is exempt under section 56(2) of the income tax Act 1961 . ( Now who are the reletives is also mentioned in this section , So Please refer section in detail) .

1) Yes , he has to show in IT return .

2) Not taxable

3) Show under exempt income.

4) Gift deed is must , as documentary evidence, so prepare and keep it for safer side.

Take more Opinion on this.