Meaning of relative under different act

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As per section 2(41) of income tax act

“Relative”, in relation to an individual, means the husband, wife, brother or sister or any lineal ascendant or descendant of that individual ;

As per sec 56

As per the Income tax act, the term “relatives” is described in detail. As gift received in the form of cash, cheque or good from your relative is fully exempt from tax. So if you receive a gift money from any of your relatives listed below, you are not liable to pay any tax on the same.

Gift received from relative is not taxable in hands of recipient under section 56 of Income Tax Act.

The persons who are considered as relatives are

In case of 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 the spouse of the individual
  7. Spouse of the person referred to in above points

In case of HUF – Any member of the HUF

As per section 2(77) of company act

A person shall be deemed to be a relative of another if,-

(a) They are members of a Hindu undivided family; or

(b) They are husband and wife; or

c) The one is related to the other in the manner indicated below

Sr.no Company`s act 2013
1 Father(including step father)
2 Mother(including step mother)
3 Son(including step son)
4 Son`s wife
5 Daughter
6 Daughter`s husband
7 Brother(including step brother)
8 Sister(including step sisters)

 

Relationship Sec-2(41) of income tax act Sec-56(2) –gift Sec-2(77) –foreign exchange management act
Spouse

 

Yes Yes Yes
Parents( father/mother) Yes Yes Yes
Brother /sisters Yes Yes Yes
Son/daughter Yes Yes Yes
Spouse of brother/sister No Yes No
Spouse of son/daughter No Yes Yes
Parent`s brother/sisters

and their spouse

No Yes No

 

Spouse`s brother /sister

and their spouse

No Yes No
Grand-Parents and

Grand Children

Yes Yes No
Spouse of Grand-

Children

No Yes No
Great-Grand-Parents

and Great-Grand-

Children

Yes Yes No
Spouse’s Parents,

Grand-Parents

and Great-Grand-

Parents

No Yes no

 

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