Defination of relative u/s 56(2) of it act, 1961
YASHPAL RAWAT
(Querist) 21 March 2012
This query is : Resolved
Pls. confirm Nani(Mother's Mother) come under the defination of relative U/s 56(2)of IT Act, 1961 and if gift is reveived from Nani or Nana so it is taxable or exempted as per IT Act,1961.
Anirudh
(Expert) 21 March 2012
Please indicate who will receive the gift from whom?
Sailesh Kumar Shah
(Expert) 21 March 2012
If your mother or father is received such gift from your nani then it is exempt under section 56(2) of the Income tax act.
and in case, if you have received, then there is no exemption.
C. P. CHUGH
(Expert) 23 March 2012
Please Go through the definition of Relative as given in section 56.
It is reproduced below
Explanation.—For the purposes of this clause, “relative” means—
(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);]
As Grand Mother/Grand Father (paternal) are your lineal ascendant but Grand Mother/Father (Maternal) cannot be described as lineal ascendant, hence any sum received from them would not qualify for tax exemption and tax would be chargeable under the head "Income from other Sources" at normal rate of tax
