Gifts received from Relatives either in Cash or in Kind are not taxable as per Section56 of Indian Income Tax Law. Those Gifts are completely exempt from tax provided the people who are giving Gifts are relatives as defined below in the Income Tax Law. Relatives should fall into either one of these categories
- Spouse of the individual (Husband or Wife of the individual)
- Parents of the individual or the Spouse (Father-in-law/Mother-in-law)
- Brother/Sister of the individual and their spouses
- Brother-in-law or Sister-in-law of the individual
- Brothers/Sisters of the parents (Uncles/Aunties)
- GrandParents of the individual or his/her spouse
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