Meaning of relative under different act
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As per section 2(41) of the 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 of income Tax Act
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 gift money from any of your relatives listed below, you are not liable to pay any tax on the same.
Gift received from a relative is not taxable in hands of recipients under section 56 of Income Tax Act.
The persons who are considered as relatives are
In the case of individual
- Spouse of the individual
- Brother or sister of the individual
- The Brother or sister of the spouse of the individual
- Brother or sister of either of the parents of the individual
- Any lineal ascendant or descendant of the individual
- The spouse of the person referred to in the above points
- Any lineal ascendant or descendant of the spouse of the individual
Details list of Relative U/s 56(2) of Income-tax Act:
| 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) |
The graphic display below as List of Relatives covered U/s 56(2) of Income Tax act
In the case of HUF – Any member of the HUF
As per section 2(77) of the 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 stepfather) |
| 2 | Mother(including stepmother) |
| 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 the 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 |
WHO IS YOUR RELATIVE
The comparison graph of the definition of a relative under the acts referred to above is as follows:
| S. No. | Relative | GST Act | IBC Act | Companies Act | Accounting Standard | Income Tax Act | ||
| 2(77) | AS -18 | Ind AS -24 | 2(41) | 56(2)(vii) | ||||
| 1 | Grandson | Not Covered | Covered (Lineal Descendant) | Not Covered | Not Covered | Not Covered | Covered (Lineal Descendant) | Covered (Lineal Descendant) |
| 2 | Grand Daughter | Not Covered | Covered (Lineal Descendant) | Not Covered | Not Covered | Not Covered | Covered (Lineal Descendant) | Covered (Lineal Descendant) |
| 3 | Grand Father | Not Covered | Covered (Lineal Ascendant) | Not Covered | Not Covered | Not Covered | Covered (Lineal Ascendant) | Covered (Lineal Ascendant) |
| 4 | Grand Mother | Not Covered | Covered (Lineal Ascendant) | Not Covered | Not Covered | Not Covered | Covered (Lineal Ascendant) | Covered (Lineal Ascendant) |
| 5 | Father | Covered (If dependent) | Covered (Lineal Ascendant) | Covered | Covered | Not Covered | Covered (Lineal Ascendant) | Covered (Lineal Ascendant) |
| 6 | Step Father | Not Covered | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered |
| 7 | Mother | Covered (If dependent) | Covered (Lineal Ascendant) | Covered | Covered | Not Covered | Covered (Lineal Ascendant) | Covered (Lineal Ascendant) |
| 8 | Son | Covered | Covered (Lineal Descendant) | Covered | Covered | Not Covered | Covered (Lineal Descendant) | Covered (Lineal Descendant) |
| 9 | Daughter | Covered | Covered (Lineal Descendant) | Covered | Covered | Not Covered | Covered (Lineal Descendant) | Covered (Lineal Descendant) |
| 10 | Step Son | Not Covered | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered |
| 11 | Brother | Covered (If dependent) | Covered | Covered | Covered | Not Covered | Covered | Covered |
| 12 | Step Daughter | Not Covered | Not Covered | Not Covered | Not Covered | Not Covered | Not Covered | Not Covered |
| 13 | Step Mother | Not Covered | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered |
| 14 | Step Sister | Not Covered | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered |
| 15 | Son’s Wife | Not Covered | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered |
| 16 | Sister | Covered (If dependent) | Covered | Covered | Covered | Not Covered | Covered | Covered |
| 17 | Step Brother | Not Covered | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered |
| 18 | Husband/ Wife/ Spouse | Covered | Covered | Covered | Covered | Covered | Covered | Covered |
| 19 | Daughter’s Husband | Not Covered | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered |
| 21 | Member of a HUF | Not Covered | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered |
| 22 | Spouse’s Brother/Sister | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered | Covered |
| 23 | Liner Ascendant/ Descendant of Spouse (Including their Spouse) | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered | Covered |
| 24 | Spouse of Liner Descendant | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered | Covered |
| 25 | Spouse of Liner Ascendant | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered | Covered |
| 26 | Spouse of Brother/ Sister of the Individual | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered | Covered |
| 27 | Spouse of Spouse’s Brother/ Sister | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered | Covered |
| 28 | Spouse of parent’s Brother Sister | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered | Covered |
| 29 | Parent’s Brother Sister | Not Covered | Covered | Not Covered | Not Covered | Not Covered | Not Covered | Covered |
| 30 | Dependent of Individual/ Spouse | Not Covered | Not Covered | Not Covered | Not Covered | Covered | Not Covered | Not Covered |
Related Persons as specified in GST law Regulatory Framework
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