Gift tax

This query is : Resolved

Deepak Chawla (Querist)
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15 May 2013 Respected Sir,

Pls let me know that under Income Tax Act, if an Individual Gifts cash in excess of Rs.50000/- to his/her father's brother/sister then would this be considered as tax free in receiver hands?

Regards

Guest

Guest (Expert)

15 May 2013 Any gift made to the relative is not taxable
as gift under income tax act, the relevant
section is 56(2)(vii).

And father, brother & sister are convered under the definition of relative.

Hence, whether the gifts exceeds Rs 50000 or not its immaterial till they are made to the relative as defined under the act.