As per Section 2(41) of the Income Tax Act, 1961 "relative", in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual.
The definition is explained further in Section 56(2)(vii) under which, it is cleared that Gifts received from relatives are not chargeable under Income from Other Sources, further clarifying that they are not taxable. This is valid for gifts received through any sum of money or property received by an individual or on or after 01-04-2017.
As per this section, the term "relative" stands for:
In case of any individual:
1. Spouse of the individual
2. Brother or sister of the individual
3. Brother or sister of the spouse of the individual
4. Brother or sister of either of the parents of the individual
5. Any lineal ascendant or descendant of the individual
6. Any lineal ascendant or descendant of spouse of the individual
7. Spouse of the person referred in point 2-6 above
In case of an HUF:
Any member of the HUF
As per this definition, there may be 33 instances under which gift is not taxable in case of an individual from point 1 to 6. In addition to that, gift from spouse of the individuals from point 1 to 6 are also exempted:
S.NO.
NAME OF THE RECEPIENT
RELATED TO POINT NO.
Husband/Wife of the individual
