29 March 2011
Gift from relative is exempt from Tax. But Nephew do not fall under relative as defined u/s 56(2)(vii). So the amount of Rs 500000/- will be fully taxable.
Relatives u/s 56(2)(vii) from whom Gift is permissible under Income Tax Act, 1961
(i) spouse of the individual;
(ii) brother or sister of the individual;
(iii) brother or sister of the spouse of the individual;
(iv) brother or sister of either of the parents of the individual;
(v) any lineal ascendant or descendant of the individual;
(vi) any lineal ascendant or descendant of the spouse of the individual;
(vii) spouse of the person referred to in clauses (ii) to (vi)
29 March 2011
Vivek Gift from Relative as per definition given above will be fully exempt from Tax. Gift from non relative are exempt upto Rs 50000/-. So in this case gift will be fully taxable. Hope karne se kuch nahi hoga.
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