GIFT TAXABILITY

[puneet virmani]

Can one make a gift to chacha's son ot tau's son n what about its taxability under Income Tax Act,1956

[CASeetharaman KC]

Uncle is covered under Section 56(2) of the Income Tax Act, under the definition of relative, but Uncles Son is not covered

AI Summary

Gift taxation: an uncle qualifies as a relative for tax purposes, but an uncle's son does not. An uncle (chacha/tau) is within the statute's definition of relative for gift taxation under Section 56(2), so transfers involving an uncle fall within the related-party gift framework, whereas the uncle's son is not within that definition and gifts involving the uncle's son are not treated as from a statutory relative under the same provision.