• Is gift taxable by my biological brother (blood relative) who was adopted by someone else?

Is gift taxable by my biological brother (blood relative) who was adopted by someone else?
I have a real brother; who was adopted by my fathers first cousin 40 years ago. Today, he wants to give a gift of Rs.50 lakhs to me. 
Will it be taxable or exempt?
Thank you for your valuable suggestions
Asked 1 year ago in Taxation

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8 Answers

Since donor is your blood relative ie biological brother gift would be exempt from tax 

 

2) Gifts within relatives are exempted under section 56 of the Income Tax (I-T) Act 1961 . Further, a brother qualifies as a 'relative' under the I-T Act. Therefore, any gift by you to your brother would be exempt from taxation for your brother and yourself.

Ajay Sethi
Advocate, Mumbai
94701 Answers
7528 Consultations

5.0 on 5.0

If he's related to you as s cousin even though there is no blood relationship, you can proceed through the gift deed without suffering any tax.

 

T Kalaiselvan
Advocate, Vellore
84896 Answers
2192 Consultations

5.0 on 5.0

No tax is payable on gift to brother under Section 56 (2) (vii) (vi) of Income Tax Act. 

Ravi Shinde
Advocate, Hyderabad
4042 Answers
42 Consultations

5.0 on 5.0

- As per sec 56 of income Tax Act , a gift received in the form of cash, cheque, or good from the relative is fully exempt from tax. 

- Hence , as you are going to receive the amount as gift from your blood related brother , then it will be exempted . 

Mohammed Shahzad
Advocate, Delhi
13211 Answers
198 Consultations

5.0 on 5.0

No it’s exempted but income from that gifted property is taxable 

Prashant Nayak
Advocate, Mumbai
31935 Answers
179 Consultations

4.1 on 5.0

It will be exempt. 

Under section 56 of the IT Act, the gifts received from any blood relative are not taxable. 

Aayushi Jain
Advocate, Ahmedabad
8 Answers

Not rated

Dear client,  In India, gifts between blood relatives are generally exempt from tax, regardless of the amount. This includes gifts from biological siblings, even if they were adopted by someone else. Therefore, the gift of Rs. 50 lakhs from your biological brother would likely be exempt from tax. However, it is always advisable to consult a tax professional for specific guidance on your situation, as tax laws can vary based on the circumstances.

Anik Miu
Advocate, Bangalore
8857 Answers
110 Consultations

4.7 on 5.0

No not exempted 

Ravi Panwar
Advocate, New Delhi
116 Answers

Not rated

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