Gift received from my Sister is taxable or exempt

[Sreenath]

I have received a Gift of Rs.8 lakhs from my sister living in UK. Is the amount received taxable or exempt under any section in Income Tax. 

If it is non taxable, should i reqport in the ITR filing and if yes, where should i report this amount. 

Please clarify. Thanks

[Rajan Kumar and associates]

Gift Received from Relatives are exempt u/s 56(2)x of the Income Tax Act, 1961. You may report that Income in Schedule EI

[Sreenath]

Thanks for your reply.

Is it compulsory to report in Schedule EI the gift received amount or is it an option only?

AI Summary

Gifts from specified relatives (Section 56(2)(x)) are tax-exempt but must be disclosed in Schedule EI of ITR A gift of Rs.8 lakh received from a sister (a specified relative) is exempt from tax under the Income Tax provisions treating gifts from relatives as non-taxable. Such exempt receipts should still be disclosed in the income tax return: report the amount under the schedule for exempt income (Schedule EI) so the exemption is reflected, even though no tax is payable; disclosure is required rather than optional to support the tax treatment.