Dear Professional members,
Under section 56(1)vii Income-tax Act, any sum received without consideration is chargeable to tax. However, gift from relatives are exempt from tax. While defining relatives under clause(e), gift by parents are not covered. Does it mean that gift from parents is chargeable to tax? If exemption is available, under which section it is available? Kindly clarify my doubt.
definition of relative includes "any lineal ascendants or descendants of the individual or spouse of the individual"..... lineal ascendants include parents, parent in laws and some others also...
Below is a comprehensive list of Donors as per definition of relative under I.Tax Act ( Hindi connotation has also been mentioned)
| List of Male Donors | List of Female Donors |
| 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 (Chacha or Tau) | Father’s Brother’s Wife (Chachi or Tai) |
| Father’s Sister’s Husband(Fufa) | Father’s Sister (Bua) |
| Grand Father (Dada, Pardada) | Grand Mother (Dadi, Pardadi) |
| Daughter’s Husband (Jawai) | Son’s Wife (Bahu or Putra Vadhu) |
| Spouse Father (Sasur) | Spouse Mother (Sas) |
| Spouse Grand Father (Dada Sasur) | Spouse Grand Mother (DadiSas) |
| Brother’s Wife (Bhabhi) | Mother’s Brother’s Wife (Mami) Husband’s Brother’s Wife (Devrani or Jithani) |
Agree with tribhuvan,
Lineal ascendants are our parents & grand parents.....
Thanks to Tribuvan as well as Saloni.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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