Gift & Relatives

Gifts received from Relatives are exempt from Gift Tax Act.

The Explanation to Section 56(2)(vi) provides that the expression "relative" means:

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; and

7. Spouse of the person referred to in clauses (2) to (6).