Relatives u/s 56(2)(vii) from Whom Gift is Permissible

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January 15, 2013Income TaxNo comments

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

  1. spouse of the individual;
  2. brother or sister of the individual;
  3. brother or sister of the spouse of the individual;
  4. brother or sister of either of the parents of the individual;
  5. any lineal ascendant or descendant of the individual;
  6. any lineal ascendant or descendant of the spouse of the individual;
  7. spouse of the person referred to in clauses (2) to (6)

Based on aforesaid definition , here is the list 44 kinds of relations, gift from whom is not taxable in your hand.

Gift exempted from Relatives

Section 56(2)(vii) shall not be attracted where an individual/HUF receives any money, immovable property or other property:

  • from any relative (as mentioned above); or
  • under a will or by way of inheritance; or
  • in contemplation of death of the payer; or
  • from any local authority as defined in section 10(20); or
  • from any fund or foundation or university or other educational institution of hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or
  • from any trust or institution registered under section 12AA

In case of gift received from any other person the taxability shall be analyzed as below:

Section-562vii

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