Gift to nephew

Quick Summary
Gift from uncle to nephew or niece is not taxable as uncle is a relative under the Income Tax Act. However, gift from nephew or niece to uncle is taxable since nephew or niece is not covered as a relative.

Uncle is covered in the definition of relatives and hence gift received from uncle is exempt. But niece and nephew are not included in the definition of relatives and hence gift from them is taxable.

I understand that nephew is exempt, but what is tax trerment in hand of uncle

In simple words not taxable.

For both not taxable?

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