Gifts

Who can give you tax-free gifts?

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Gifts received from any relatives are not considered as exempt income. The income tax act provides exhaustive list of relatives from whom tax free gifts can be received.

Husband Wife
Son or Daughter Step child or Adopted child
Daughter-in-Law Son-in-Law
Father or Mother Father or Mother-In-Law
Step-father/mother Half-brother/Sister
Brother or Sister  
Brother-in-Law and his wife Sister-in-law and her husband
Grandfather or Grandmother Spouse’s Grandfather or Grandmother
Grandson and his wife Granddaughter and her husband
Great Grandson and his wife Great Grandson and his wife
Great Grandfather and Grandmother Spouse’s Great Grandfather and Great Grandmother
Father’s Brother (and his wife) Father’s Sister (and her husband)
Mother’s Brother (and his wife) Mother’s Brother (and his wife)

In case of Hindu Undivided Family (HUF), every member of HUF will be treated as relative. [An HUF is a tax category for which income-tax provisions are slightly different from income tax of individual]

Not a relative

Following persons are not deemed as ‘relatives’ for the purpose of receiving tax free gifts:

  1. Step-brother/sister
  2. Brother’s Son/Daughter
  3. Sister’s Son/Daughter
  4. Husband’s Brother’s Son/Daughter
  5. Husband’s Sister’s Son/Daughter
  6. Wife’s Brother’s Son/Daughter
  7. Wife’s Sister’s Son/Daughter
  8. Cousins

Meaning of Relatives (In Hindi)

‘Relative’ of an individual shall include his following relationships:

Following persons are not deemed as ‘relatives’ for the purpose of receiving tax-free gifts:

Taxability of Gifts in hands of Individuals

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