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Gift to nephew

PRAVEEN GOYAL (Finance Professional) (33 Points)

26 December 2013

Wether GIFT from Uncle(Father's brother) to his/her Nephew/Niece(Brother's Son/Daughter), Is Chargeable to TAX or NOT...??

AND

Wether GIFT from Nephew/Niece(Brother's Son/Daughter) to Uncle(Father's brother), Is Chargeable to TAX or NOT...??

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18 Replies

Amrin (Chartered Accountant) (215 Points)
Replied 26 December 2013

If gift is given from "UNCLE" to "NEPHEW" (assesee) then it is not taxable as per (iv) below.

But Gift from "NEPHEW" to "UNCLE" is TAXABLE as per IT act because the same doesnt cover under IT Act in the hands of "UNCLE"

Relatives u/s 56(2)(vii) from whom Gift is permissible under Income Tax Act, 1961

(i) spouse of the individual;

(ii) brother or sister of the individual;

(iii) brother or sister of the spouse of the individual;

(iv) brother or sister of either of the parents of the individual;

(v) any lineal ascendant or descendant of the individual;

(vi) any lineal ascendant or descendant of the spouse of the individual;

(vii) spouse of the person referred to in clauses (ii) to (vi)

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Sanket (!..Live to Give..!) (16427 Points)
Replied 26 December 2013

Uncle is not included in the definition of Relative as per Income Tax Act, 1961.

So it is Taxable.

CA Pallav Singhania (IT System Auditor) (33678 Points)
Replied 27 December 2013

Gifts received from any relative, as defined under the Act, is not taxable. In case of gift of money received from a relative, it is advisable to have gift deed/letter of understanding exchanged and kept in records by the recipient of the gift for future reference.

Hence, it is prudent to maintain documentary evidence in respect of the gifts received, to avoid any dispute with tax authorities at a later stage.

Following are considered as relatives(in case of individual) under income tax act::

1) spouse of individual -----husband/wife

2)brother / sister of individual

3)brother/ sister of spouse of individual -----brother in law/sister in law

4)brother/ sister of either of parents of indiviual -----chacha/mama/bua/maasi

5) lineal ascendents/descendents of individual -----daada/daadi/naana/ naani

6)lineal ascendents/descendents of spouse of individual

7) spouse of persons mentioned abv(1---6)

Hence, Gift recieved from Uncle is exempt from the purview of tax..

2 Like

CA Ashish Bhandari (Chartered Accountant) (32 Points)
Replied 27 December 2013

Whether gift recd from father in law is taxable as the payment is made by cheque through my spouse account for gift?

1 Like

Suman Kumawat (Article) (612 Points)
Replied 27 December 2013

Nope. It is not taxable!! Income received from relative exempt from tax!! And father in law is a relative.. So its nlt taxable

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Kamlesh Parte (Sr. Accountant) (21 Points)
Replied 24 June 2014

If cash of Rs. 4 Lacs received jointly to me and my mother from uncle as per the his will/deed, is it taxable?

Rajdeep Thakurta (CA- Final) (30 Points)
Replied 14 December 2015

Please let me know whether gift from uncle( Assesse) to his sister's son is taxable or not ??

Vishal Goel (Chartered Accountant) (1693 Points)
Replied 06 January 2016

Hello @ Rajdeep

Gift received from Relatives is fully exempted from the levy of tax and no income tax would be levied on such Gifts.

Uncle is covered under relative defination therefore, It will not be taxable in sister's son hand.

Manak Rathi (CA) (31 Points)
Replied 30 July 2016

Sir,

In our opinion gift from Nephew to uncle u/s. 56(2) of I.T.Act,1961 is exempted from tax in view of clause (vi) and explanation of clause relative (iv) of the explanation which is reproduce below:

Relatives from whom Gift is permissible under Income Tax Act

Father (Papa or Pitaji)	Mother (Maa or Mummy)
Brother (Bhai)	Sister (Bahin)
Son (Beta or Putra)	Daughter (Beti or Putri)
Grand Son (Pota or Potra)	Grand Daughter (Poti or Potri)
Husband (Pati)	Wife (Patni)
Sister’s Husband (Jija)	Brother’s Wife (Bhabhi)
Wife’s Brother (Sala)	Wife’s Sister (Sali)
Husband’s Brother (Dewar)	Husband’s Sister (Nanad)
Mother’s Brother (Mama)	Mother’s Sister (Mausi)
Mother’s Sister Husband (Mausa)	Wife’s brother’s wife (Sala Heli)
Father’s Brother (Chaha or Tau)	Father’s Brother’s Wife (Chachi or Tai)
Father’s Sister’s Husband(Fufa)	Father’s Sister (Bua)
Grand Father (Dada)	Grand Mother (Dadi)
Great Grand Father (Pardada)	Great Grand Mother (Pardadi)
Daughter’s Husband (Jawai)	Son’s Wife (Bahu or Putra Vadhu)
Wife’s Father (Sasur)	Wife’s Mother (Sas)
Husband’s Father (Sasur)	Husband’s Mother (Sas)
Wife’s Grand Father (Dada Sasur)	Husband’s Grand Mother (DadiSas)
Husband’s Grand Father (Dada Sasur)	Wife’s Grand Mother (Dadi Sas)
Wife’s Great Grand Father (Bada Dada Sasur)	Husband’s Great Grand Mother (Badi Dadi Sas)
Husband’s Great Grand Father (Bada Dada Sasur)	Wife’s Great Grand Mother (Badi Dadi Sas)
Brother’s Wife (Bhabhi)	Mother’s Brother’s Wife (Mami) Husband’s Brother’s Wife (Devrani or Jithani)

1 Like

Rajesh Patel (Business) (49 Points)
Replied 13 March 2017

Dear Sir,

Gift from nephew to uncle is not shown in the above table

1 Like

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(Guest)

Gift from nephew to uncle is not shown in the above table taxable after 50000/- upto 50000/- no tax on it

m c agrawal (chief manager-opted vrs) (23 Points)
Replied 30 April 2018

gift received from paternal uncle by nephew's wife is taxable or not?

Rahul Jain (PARTNER AT PIPARA&ASSOCIATES) (8 Points)
Replied 26 June 2018

IS NANA NANI COMES UNDER THE DEFINITON OF RELATIVE

Siddharth Goel (Chartered Accountant) (3031 Points)
Replied 04 July 2018

Hi,

These are the relatives as per the definition of relatives under the Income Tax Act for the purpose of Gifts taxation.

S no.	प्राप्तकर्ता से सम्बन्ध	Relation with the recipient
1	पति/पत्नी	Husband/Wife
2	भाई	Brother
3	बहन	Sister
4	ननद	Husband’s Sister
5	जेठ/देवर	Husband’s Brother
6	साली	Wife’s Sister
7	साला	Wife’s Brother
8	बुआ	Father’s Sister
9	चाचा/ताऊ	Father’s Brother
10	मौसी	Mother’s Sister
11	मामा	Mother’s Brother
12	पिता	Father
13	माता	Mother
14	बेटा	Son
15	बेटी	Daughter
16	दादा	Grandfather
17	परदादा	Great grandfather
18	दादी	Grandmother
19	परदादी	Great grandmother
20	पोता	Grandson
21	पोती	Grand daughter
22	पड़पोता	Great grandson
23	पड़पोती	Great grand daughter
24	ससुर	Husband’s Father
25	ससुर	Wife’s Father
26	सास	Husband’s Mother
27	सास	Wife’s Mother
28	पति के दादा	Husband’s grandfather
29	पत्नी के दादा	Wife’s grandfather
30	पति की दादी	Husband’s grandmother
31	पत्नी की दादी	Wife’s grandmother
32	पति के परदादा	Husband’s great grandfather
33	पत्नी के परदादा	Wife’s great grandfather
34	पति की परदादी	Husband’s great grandmother
35	पत्नी की परदादी	Wife’s great grandmother
36	भाई की पत्नी (भाभी)	Brother’s wife
37	जीजा	Sister’s husband
38	नन्दोई	Husband’s sister’s husband
39	साडू	Wife’s sister’s husband
40	दौरानी/जेठानी	Husband’s brother’s wife
41	सलाईली	Wife’s brother’s wife
42	फुपा	Father’s sister’s husband
43	चाची/ताई	Father’s brother’s wife
44	मौसा	Mother’s sister’s husband
45	मामी	Mother’s brother’s wife
46	बहु	Son’s wife
47	दामाद	Daughter’s husband
48	पोते की पत्नी	Grandson’s wife
49	पड़पोते की पत्नी	Great grandson’s wife
50	पोती का पति	Grand daughter’s husband
51	पड़पोती का पति	Great granddaughter’s husband