Taxability of Gifts Received from relatives (Section 56(2)(x) of Income Tax Act, 1961)
As per Sec 56(2)(x) of Income Tax Act, 1961 gift received from a relative is not taxable irrespective of the amount received.
But who is a Relative?
Relative under Income Tax Act is different from relative used in common parlance.
Relative under Income Tax Act, is depicted as below,
