MEANING OF RELATIVE UNDER DIFFERENT ACT

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

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 the Income-tax act, the term “relatives” is described in detail. A 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 a relative is not taxable in hands of recipient under section 56 of Income Tax Act.

The persons who are considered as relatives are

In the case of individual

1. Spouse of the individual
2. A Brother or sister of the individual
3. Brother or sister of the spouse of the individual
4. Sister or brother  of either of the parents of the individual
5. Any lineal ascendant or descendant of the individual
6. lineal ascendant or descendant of the spouse of the individual
7. Spouse of the person referred to in above points

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)

3. AS Per IBC ACT 2016 –

The term “relative”, with reference to any person, means anyone who is related to another, in the following manner, namely:-

• members of a Hindu Undivided Family,
• husband,
• wife,
• father,
• mother,
• son,
• daughter,
• son’s daughter and son,
• daughter’s daughter and son,
• grandson’s daughter and son,
• granddaughter’s daughter and son,
• brother,
• sister,
• brother’s son and daughter,
• sister’s son and daughter,
• father’s father and mother,
• mother’s father and mother,
• father’s brother and sister,
• mother’s brother and sister; and

• whenever the relation is that of a son, daughter, sister, or brother, their spouses shall also be included.

4. As per FOREIGN EXCHANGE MANAGEMENT ACT (FEMA) :

FEMA  relies on the definition in the Companies Act.  As per section 2 (77) of the Companies Act 2013, “Anyone who is related to another if

• they are members of a Hindu Undivided Family (HUF); or
• they are husband and wife; or
• As may be prescribed. The Rule 4 of the Companies (Specification of definition details) Rules, 2014 lists the relatives as:
• Father, Mother
• Son, Daughter and their spouse
• Brother and Sister
• For easy understanding, the definitions of relative under all three regulations are summarized in the following table:

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