Nephew's gifts to uncle taxable; uncle's gifts to nephew exempt

• Gifts exceeding Rs 50,000 are generally taxable for the recipient, with no tax liability for the donor.
• Gifts from "specified relatives" are tax-free without an upper limit; this includes maternal/paternal uncles/aunts gifting to nieces/nephews.
• However, gifts from nieces/nephews to uncles/aunts are taxable if they exceed Rs 50,000, as nieces/nephews are not considered "specified relatives" in this scenario.
• The retired uncle receiving Rs 60,000 monthly from his nephew will have the full amount treated as taxable income.
• A tax rebate under Section 87A may apply if the uncle's total taxable income, including these gifts, does not exceed Rs 12 lakhs under the new tax regime.

Why It Matters: It clarifies that gifts from nephews/nieces to uncles/aunts are taxable.