Proof of 'Relative'

[Ethirajan Parthasarathy]

Under section 56 Gift from a “relative” is exempt. What is the proof normally acceptable by the department to prove that donor is a “Relative”

Eg :- If the donor is paternal uncle or sister’s husband.

 

AI Summary

Clarification on Proof Required to Establish Donor as 'Relative' for Tax Exemption Under Section 56 of Income Tax Act A query was raised about the proof required to establish a donor as a 'relative' for tax exemption under Section 56 of the Income Tax Act, 1961. The response clarified that the Act defines 'relatives' for individuals and Hindu Undivided Families (HUFs), including spouses, siblings, lineal ascendants or descendants, and their spouses. A detailed list was provided, outlining exempt relationships for both male and female recipients, emphasizing that gifts from these relatives are tax-exempt, regardless of the occasion, due to natural love and affection.