Kanak Gajjar

Section 56(2)(VII) of the Income Tax Act,1961 reads as any even if amount exceeding Rs. 50,000/- if received from “Relative” then it is not chargeable to tax.

However the definition of the term “Relative” which is given in the 1st explanation to the proviso to section 56(2)(VII) is very wide in its own.

Hence the following list and chart is a simplification of that definition for the ready reference of readers.

EXHAUSTIVE LIST OF RELATIVE U/S 56(2)

Sr no. Relative Covered under
1. Husband/wife Clause(i)
2. Brother and his wife Clause(ii)with(vii)
3. Sister and her husband Clause(ii)with(vii)
4. Wife’s bro. and his wife Clause(iii)with(vii)
5. Wife’s sister and her husband Clause(iii)with(vii)
6. Kaka – Kaki Clause(iv)with(vii)
7. Fua – Foi Clause(iv)with(vii)
8. Mama – Mami Clause(iv)with(vii)
9. Masa – Masi Clause(iv)with(vii)
10. Father – Mother Clause(v)with(vii)
11. Grandfather – Grandmother Clause(v)with(vii)
12. Son and his wife Clause(v)with(vii)
13. Daughter and her Husband Clause(v)with(vii)
14. F I L and M I L Clause(vi)with(vii)
15. G F I L and G M I L Clause(vi)with(vii)

F I L – Father in Law

M I L – Mother in Law

G F I L – Grand Father in Law

G M I L – Grand Mother in Law

Chart Showing Above List of Relatives

Individual(Author is Currently doing articleship at Shah Mehta & Bakshi, Chartered Accountants, Vadodara, Gujarat and  Going to Appear for CA Final in Nov.2017)

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Category : Income Tax (24919)
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Tags : Gift (77) section 56 (89) Tax on Gift (34)

2 responses to “List of relatives covered under Section 56(2) of Income Tax Act,1961”

  1. Raj says:

    Please clarify if an individual can give gift to his daughter’s daughter.Ifso, whether income acruing after investing the gift money by the donee will be considered as her own income or that of the donor.

  2. DINESH says:

    huf can give any ammount to his daughter as a gift.it is taxable or not.if not taxable any document require for give tax

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