Meaning of Relative for Section 56(2)

A gift received from a relative is not taxable in the hands of the recipient under section 56 of the Income Tax Act. The persons who are considered relatives are

In the case of an individual

  1. Spouse of the individual

  2. Brother or sister of the individual

  3. Brother or sister of the spouse of the individual

  4. Brother or sister of either of the parents of the individual

  5. Any lineal ascendant or descendant of the individual

  6. Any lineal ascendant or descendant of the spouse of the individual

  7. Spouse of the person referred to in the above points

In the case of HUF – Any member of the HUF

Based on the above points there may be 51 relations from which a gift is not taxable in the hands of an individual.

S no.  Relation with the recipient  Related to above point no.
1 Husband/Wife 1
2 Brother 2
3 Sister 2
4 Husband’s Sister 3
5 Husband’s Brother 3
6 Wife’s Sister 3
7 Wife’s Brother 3
8 Father’s Sister 4
9 Father’s Brother 4
10 Mother’s Sister 4
11 Mother’s Brother 4
12 Father 5
13 Mother 5
14 Son 5
15 Daughter 5
16 Grandfather  5
17 Great grandfather 5
18 Grandmother 5
19 Great grandmother 5
20 Grandson 5
21 Grand daughter 5
22 Great grandson 5
23 Great grand daughter 5
24 Husband’s Father 6
25 Wife’s Father 6
26 Husband’s Mother 6
27 Wife’s Mother 6
28 Husband’s grandfather 6
29 Wife’s grandfather 6
30 Husband’s grandmother 6
31 Wife’s grandmother 6
32 Husband’s great grandfather 6
33 Wife’s great grandfather 6
34 Husband’s great grandmother 6
35 Wife’s great grandmother 6
36 Brother’s wife 7
37 Sister’s husband 7
38 Husband’s sister’s husband 7
39 Wife’s sister’s husband  7
40 Husband’s brother’s wife 7
41 Wife’s brother’s wife 7
42 Father’s sister’s husband 7
43 Father’s brother’s wife 7
44 Mother’s sister’s husband 7
45 Mother’s brother’s wife 7
46 Son’s wife 7
47 Daughter’s husband 7
48 Grandson’s wife 7
49 Great grandson’s wife 7
50 Grand daughter’s husband 7
51 Great granddaughter’s husband 7