The ITAT ruled that gifts between step-siblings qualify for ...

Step-Siblings Qualify as "Relatives" for Gift Tax Exemption Under Section 56(2)(vii) of Income Tax Act

March 24, 2025

Case Laws Income Tax AT

The ITAT ruled that gifts between step-siblings qualify for exemption under Section 56(2)(vii) of the Income Tax Act. The Tribunal held that although "brother and sister" is not explicitly defined in the Act, the term "relative" should be interpreted to include relationships by affinity. Applying common law principles, step-siblings who become related through their parents' marriage fall within the definition of "brother and sister" for tax purposes. Consequently, property received as a gift by a step-brother from his step-sister cannot be taxed under Section 56(2) as income from other sources. The addition made by the AO was deleted and the appeal was decided in favor of the assessee.

View Source

← Previous Next →

The ITAT ruled that gifts between step-siblings qualify for ...

Step-Siblings Qualify as "Relatives" for Gift Tax Exemption Under Section 56(2)(vii) of Income Tax Act

March 24, 2025

Case Laws Income Tax AT

You may also like:

Gift u/s 56(2) (vii) - scope of term relatives u/s 2(41) - Grant of exemption from income tax on gifts received - relatives as defined under Section 2(g) of the Senior...

Additions u/s 56 - The gifts received from the close relatives u/s 56(2)(v) are outside the scope of 56(2). - The surrender of the rights of the close relatives in...

Proposed amendment enables recovery of existing liabilities under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 from seized assets...

Addition as income from other sources - Stamp value in excess of consideration price - gift of flat to a grandson - Addition made against the clubbing of income u/s...

The case pertains to the reopening of assessment and addition u/s 56(2)(vii) of the Act regarding the receipt of immovable property as a gift by the petitioner from the...

The summary highlights the key difference between the scope of total income under the Income Tax Act and the Black Money (Undisclosed Foreign Income and Assets) and...

Addition u/s 56(2)(vii)(b) - valuation of land purchased by assessee - deemed gift under section 56(2)(vii)(b)(ii) - Assessee submitted that, actual deed could not be...

Receipt of Gift from HUF - income from other sources - whether HUF comes under the term ‘group of relatives’ defined u/s 56(2)? - Held Yes - Receipt of Gift from HUF -...

The High Court examined the jurisdiction of the Assessing Officer (AO) and the prescribed income-tax authority to issue notices u/s 143(2) of the Income Tax Act. It held...

Taxability of the amount received by the assessee from his HUF, in which he is a coparcener - money received without consideration -Taxability of gift received by the...

Cash gifts received in cheque from relatives and blended with the HUF account - the issue raised by the appellant requires an in-depth analysis of both the provisions,...

Deduction u/s 80P(2)(a)(i) - The decision underscores the principle that interest income earned by co-operative societies, if invested in compliance with statutory...

Gift received – definition of 'relative' as provided under Explanation to section 56(2)(v) - The amount received by the assessee from mother's sister's son does not...

Addition u/s 56(2)(vii)(c)(ii) - allotment of shares to assessee shareholder at a value lower - whether Tax to be paid by the shareholders or the company? - The shares...

Addition u/s 56(2)(vii)(b)(ii) - FMV of property - The events subsequent to the transaction of “transfer” of the immovable property under consideration will have no...

Quick Updates: