Clarification for meaning

[DEVKUMAR KOTHARI]

For brain storming - Relative in context of S. 56: If A is related to B then B should be condsidered as related to A. In other words a relationship is based on reciprocity. However, in S. 56 such reciprocity is not clear regarding some relations. For example there is reciprocity between spouse, brother and sister, brother or sister of the spouse of the indiidual, lineal ascendents or discendent of individual or spouse. However, brother or sister of either of parent is related that is Chacha, Bhua, mama and masi are related but bhatija / bhatiji/ bhanja / bhanji may not be considered as relative becasue they are not lineal descendent. Reciprocity should be presumed. For example when Chacha ( brother of father) is realtive of Bhatija then it cannot be that Bhaitija is not related to Chacha. A clarity is desirable.

AI Summary

Debate on Section 56 of Income Tax Act: Should Nephews and Nieces Be Recognized as Relatives for Tax Purposes? A discussion on the interpretation of Section 56 of the Income Tax Act focuses on the concept of reciprocity in defining relatives. The initial query questions why certain relatives, like uncles and aunts (Chacha, Bhua), are recognized, but nephews and nieces (Bhatija, Bhatiji) are not, despite the natural reciprocal relationship. One response suggests that the law assumes older relatives give gifts to younger ones, not vice versa. The original poster argues for reciprocal recognition, noting that relationships should be naturally mutual and that the current provisions might be unconstitutional, as they redefine income inappropriately.