Section 56 (2)-definition of relatives
VIJAY MOHAN SHARMA
(Querist) 29 May 2012
This query is : Resolved
Whether Nephew/Niece i.e. Husband's Brother's Son/Daughter or Husband's Sister's Son/Daughter are covered in the definition of Relatives for the purpose of Section 56(2)(vii)of the Income tax act, 1961 ?
A V Vishal
(Expert) 29 May 2012
No they are not considered as relatives for the purpose of 56(2)(vii)
Suhail A.Siddiqui
(Expert) 29 May 2012
No, for Income Tax purpose blood relatives are covered under the definition of relative.
C. P. CHUGH
(Expert) 29 May 2012
Following is the list of relatives as specified in section 56 of the Act.
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);]
R K JAIN
(Expert) 30 May 2012
Yes, Nephew/Niece i.e. Husband's Brother's Son/Daughter or Husband's Sister's Son/Daughter are covered in the definition of Relatives for the purpose of Section 56(2)(vii)of the Income tax act, 1961. They(Nephew/niece) can receive the gifts.
Anirudh
(Expert) 30 May 2012
Dear Mr. R.K.Jain,
Can you please indicate, according to you, against which relevant clause [(i) to (vii)] given above, the said persons are covered as relatives?
VIJAY MOHAN SHARMA
(Querist) 30 May 2012
In our case the nephew is receiving the Immovable Property in the form of Gift from his Aunt(i.e. Chachi)
Can the Aunt gift her nephew as per the relatives definition.
Will the said Immovable Property be treated as Income from other sources in the hands of Nephew?
I think as per Clause(iv) brother or sister of either of the parents of the individual;
and Clause (vii) spouse of the person referred to in clauses (i) to (vii)
as given in Section 56 of the Act, the Aunt will be covered in the definition of Relatives and he can receive the said immovable Property from his aunt.
Still I want to confirm from the Experts.
Thank You
Shonee Kapoor
(Expert) 30 May 2012
No. You can not mix two clauses
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
R K JAIN
(Expert) 09 June 2012
THE PERSON WHO IS RECEIVING THE GIFT SHOULD BE SEEN WHETHER HE/SHE IS RECEIVING THE GIFT FROM RELATIVE BECAUSE THE TAX LIABILITY IS ON THE PERSON RECEIVING THE GIFT NOT ON THE PERSON GIVING THE GIFT. SO, A PERSON CAN RECEIVE THE GIFT FROM CHACHI(AUNT) AS PER CLAUSE (VII). CHACHI(AUNT) CAN NOT RECEIVE THE GIFT FROM NEPHEW BUT SHE CAN GIVE THE GIFT TO NEPHEW.
