Kanak Gajjar

This article provides list of relatives covered Section 56(2)(VII) of the Income Tax Act,1961. As per Section 56(2)(VII) if any gift received from relative which are covered under following list will be exempt in the hands of receiver.

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 under Section 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.  Father in Law and Mother in Law Clause(vi)with(vii)
15.  Grand Father in Law (GFIL) and Grand Mother in Law (GMIL) Clause(vi)with(vii)

Chart Showing List of Relatives covered under section 56(2)

Individual(Republished with Amendments)

More Under Income Tax

35 Comments

  1. Jasmeet says:

    Hello Sir,

    My mother just got retired and want to gift me 10 lakh as cash through her white money into my saving account which I will withdraw from my bank account. Will she or I be liable for any tax ? I am not going to use money to earn or invest.

    Also can my mother gift 5 lakh to my spouse (her daughter in law) and any of them will be liable for tax ?

  2. S P Shaw says:

    Can I give gift of Rs 3,00,000 to my sister’s daughter without Tax implications in the hands of Donee? ? Please reply me on my email Id.
    Rgds,
    Shaw

  3. suresh prasar rastogi says:

    Whether gift to Grand son/ daughter, that is Son’s son or daughter or daughter’s son/ daughter is exempted under the provision of gift tax

    1. L P Subramanian says:

      Whether gift to Grand son/ daughter, that is Son’s son or daughter or daughter’s son/ daughter is exempted under the provision of gift tax

  4. manish verma says:

    IF I RECEIVED MONEY FROM HUSBAND OF MY WIFE’S SISTER, MEANS HUSBAND OF MY SALI (SISTER-IN-LAW) , THEN GIFT IS TAXABLE OR NOT

  5. Manu says:

    I am a salaried tax payee. If I transfer stocks purchased during march 2020 and april 2020 via off market transactìon with reason gift what will be the tax implication for me and my mother

  6. rakesh says:

    “relative”, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual
    this is definition on income tax site, can you please tell me how lineal ascendant or descendant of wife are falling in meaning of relative

  7. P K TELI says:

    Sir, If Mother-in-Law receives income from Gift given from Sister-in-law whether the Income received by Mother in law will be treated as her income or clubbed underr Sister in law

    1. Deep Mehta says:

      Here sister-in-law will be either considered as her daughter-in-law or her daughter itself. So it will be tax-free for mother-in-law

  8. Prakash Kajaria says:

    Pls clarify whether a person can give gift to son of her mother’s brother. Will he be considered as ‘Relative’ under Section 56((2) of Income Tax Act.

  9. MUNAZIR HASAN says:

    can’t understand the whole concept please make a video of it and then post on this page so that we can easily get the whole matter

  10. 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.

    1. Saurabh Jain says:

      Hi Dinesh, there is no concept of Daughter in HUF. Daughter will be considered as a member of the HUF and any member of the HUF can give gift to any other member of the HUF and it will not attract any tax liability.

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