Tax on gift and donation

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This discussion clarifies the taxability of gifts and donations received for a spouse's medical treatment. Under Section 56 of the Income Tax Act, if an individual or HUF receives gifts or donations exceeding £50,000 in a financial year (excluding from close relatives), the entire amount is generally taxable as 'Income From Other Sources'. The intended use of the funds, such as for medical expenses, does not exempt it from this tax liability.

Jomon P B

Jomon P B (Querist)
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14 June 2020 The wife had received donations and gifts(not from the close relatives) in connection with the medical treatment of her husband. All amount received as donations and gifts was spent for the medical treatment of her husband. Kindly explain the tax liability on the amount received as donations and gifts.

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Aashok Kumar Sharma online

Aashok Kumar Sharma

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14 June 2020 If an individual/Huf receives from any person or persons any gift, exceeding Rs. 50000 in any previous year, as per income tax laws, the aggregate amount shall be taxable as Income From Other Sources in the hands of individual or HUF under section 56. The gift can be the following:

Gift Any sum of money (without Consideration) :–

if the aggregate amount of money received in any previous year is more than Rs 50,000, the entire amount received shall be taxable as income from other source

https://taxguru.in/income-tax/taxability-gifts-received-relatives-relatives.html

Jomon P B

Jomon P B (Querist)
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14 June 2020 ok...but this money is exclusively received for the purpose of treatment of her husband.