Taxability of property gifted to nephew

Section 56(2)(x) exempts gift received by any person from his/her relatives in the case of an individual.

Now "relative" means,

(i) in case of an individual :

• spouse of the individual;
• brother or sister of the individual;
• brother or sister of the spouse of the individual;
• brother or sister of either of the parents of the individual;
• any lineal ascendant or descendant of the individual;
• any lineal ascendant or descendant of the spouse of the individual;
• spouse of the person referred to in items (ii) to (vi);

(ii) in case of a Hindu undivided family, any member thereof;

• In the first case where brother gifts his immovable to nephew then (from the viewpoint of nephew) the said transaction would not be taxable since sister's brother would be covered under "brother or sister of either of the parents of the individual".
• Under the second case also the transaction would be exempt since definition of relative includes 'Brother or sister of the individual'.