Relatives covered under the definition for tax free gifts -


Relatives covered under the definition for tax free gifts

 
One of the main problems faced by individuals when they look to receive or give gifts is not being knowledgeable about when the gift would be taxable. The reason for this is that there is a term called relative which is present in the income tax act and gifts received from a relative would not be taxed in the hands of the receiver. This is the reason that the individual has to ensure that they check whether the relative who is giving the gift is covered by the definition otherwise the receipt could end up being taxed. 

Overall nature of transaction

When it comes to question of gifts then the receiver of the gift will be taxed on the figure that is not exempt by including this in the income under the head of income from other sources. There are some receipts which are excluded from being included as the income and this will include the amount received as inheritance or the amount received at the time of a wedding or the amount received from relatives. In all other cases if the amount received is more than Rs 50,000 in a year then this figure would be included as income. Now the key part if the definition of the relative so that the individual knows the person from whom the receipt is not taxable.

http://www.lawweb.in/2013/06/relatives-covered-under-definition-for.html

plz check our other pagehttp://www.lawweb.in/p/submit-articlescase-laws.html

 
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Legal Consultancy/Advocate

Hi Beni, yes it is so. Also, the list is vast and to sum it up most of the immediate family and close realtives are under the defination of RELATIVES in the Income Tax Act.

 
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self practising

I Agree with all above are answers for Electronic return filling mendetory above 5 Lakh

 
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Assistant Manager- Taxation

Explanation to Sub section (v) Will give the "List of Relatives" for the purpose of section 56.

Refer explanation on http://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-56

 
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