ITAT Ruling: Step-Siblings Are 'Relatives' For Property Tax Exemptions

An Indian court ruled that a man didn't have to pay taxes on a property gifted to him by his stepsister.

The Income Tax Department initially wanted to tax the property, believing step-siblings weren't relatives.

However, the court, looking at common definitions and the idea of family, said they are relatives in this situation.

Because the gift was between relatives, no tax was due.

This ruling means that gifts between step-siblings may not be taxed.

The case centered around a property in Mumbai, originally gifted by the father, later gifted by the daughter to the stepbrother.