FD (Principal amount) of deceased - received by non relative taxable?

This discussion explores whether the principal amount of a Fixed Deposit (FD) held by a deceased person is taxable when received by a non-relative who becomes the account holder. While interest earned on the FD is generally taxable for the survivor, the principal amount's taxability is questioned. The conversation touches upon potential exemptions under the Gift-Tax Act, 1958, specifically concerning gifts made in contemplation of death.