Internal Auditor
214 Points
Posted on 10 October 2011
Gifts from relatives are Tax-Exempt
Any gift received from relatives of any amount during financial year is completely exempt from tax. Hence, it's crucial to understand the meaning of the expression 'relative' for this purpose. Explanation to Sec. 56(2) (vi) provides that the expression "relative" means:
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Spouse of the individual;
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Brother or sister of the individual;
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Brother or sister of the spouse of the individual;
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Brother or sister of either of the parents of the individual;
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Any lineal ascendant or descendant of an individual;
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Any lineal ascendant/descendant of spouse of the individual
Accordingly, in your case, Gift will not be taxed.