Question on Income tax:
Mr. A gets a gift of rs. 2 lakhs from his niece and rs. 4 lakhs from his nephew in the financial year 2007-2008. Whether these gifts are taxable?
6 Replies
praveen reddy
(practicing Chartered Accountant)
(55 Points)
Replied 08 July 2008
gifts from relatives are exempt. refer sec 56 of the IT act
DMC
(Student)
(364 Points)
Replied 08 July 2008
But does niece and nephew qualify to be a relative???? Niece and nephew are not lineal descendants. Also the definition does not say specifically niece or nephew.
Late CA Sampat Jain
(Chartered Accountant)
(4772 Points)
Replied 08 July 2008
anirudh dash
(CA final student)
(32 Points)
Replied 08 July 2008
as per sec 56 nice nd nephew is not a relative in that case whole amt is taxable in F.Y. 2007-08 under income from other source head.
CA Bhavesh Patodiya
(CA)
(29 Points)
Replied 08 July 2008
It is taxable in the hands of Mr.A
b coz niece & nephew is not a relative of Mr.A as per section 56(2)(vi) of The Income Tax Act,1961.
P. BASKAR
(TAX CONSULTANT)
(66 Points)
Replied 08 July 2008
As per S56(2)(vi) Nephew and Niece are not covered under relatives. They are not a Lineal ascendant or descendant. So the hole amount is taxable under Income from other sources.
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