Gift Tax

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Gift Tax

Is there any limit to gift I can receive from my relatives which will be tax free. Do relatives also include brother-in-law, cousins etc. or only blood relatives?

Profile photo of Rahul Kohli Asked By: Rahul Kohli 1 replies 1 helpful answers Last Updated: 9 months, 3 weeks ago
  • Profile photo of Rahul KohliRahul Kohli
    Participant

    Is there any limit to gift I can receive from my relatives which will be tax free. Do relatives also include brother-in-law, cousins etc. or only blood relatives?

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    Any gift received from the relative is exempt from tax. As per the act gift received from below relatives is exempt.
    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 (It includes Brother in Law);
    (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);

    So based on the above list gift received from brother in law is exempt. Though gifts from uncle and aunt is exempt any gift received from cousin is not exempt as they are not covered under the above list of relatives..

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