TaxTMI 
TaxTMI 
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.
Proof of "Relative"
09 Jul 2024 
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Gifts from relatives: statutory definition includes in laws and lineal ascendants/descendants, making such gifts tax exempt.
The Income tax Act's statutory definition of relative for gift exemption includes spouse, siblings, siblings of spouse, siblings of parents, lineal ascendants and descendants of the individual and of the spouse, and spouses of those persons; HUF members qualify for HUF. Gifts received without consideration from persons in these enumerated categories are exempt from tax, so donors such as a paternal uncle or sister's husband are covered if they appear in the relevant recipient list. (AI Summary)
The Income tax Act's statutory definition of relative for gift exemption includes spouse, siblings, siblings of spouse, siblings of parents, lineal ascendants and descendants of the individual and of the spouse, and spouses of those persons; HUF members qualify for HUF. Gifts received without consideration from persons in these enumerated categories are exempt from tax, so donors such as a paternal uncle or sister's husband are covered if they appear in the relevant recipient list. (AI Summary)