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Gift from friend's charitable trust

Sandeep Himatsingka (SCM-Head) (85 Points)

03 February 2013

My wife has received a cheque of Rs 3 lacs from my friend's cheritable trust for her medical treatment. What would be the IT treatment in my wife's file?

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CA Ashish Pathak (Employed at Cipla Ltd.) (2779 Points)
Replied 03 February 2013

If your wife receives Rs.3lakhs in cash then The entire 3lakhs will be taxable in your wife's hand as per the section 56(2)(vii). The section clearly says that where an individual receives, in any previous year, from any person or persons, any sum of money, the aggregate value of which exceeds Rs.50000, the whole of the aggregate value of such sum shall be taxable under the head Income from Other Sources. However this section is not attracted if the cash gift is received from any trust or institution regd. U/s 12AA. So, if that trust is registered u/s 12AA, there will be no tax liability for Rs.3lakh received from that trust.