GIFT TAX

RECEIPTS WITHOUT CONSIDERATION TO BE TREATED AS INCOME [SEC. 56(2)(vi)]

Where any sum of money, the aggregate value of which exceeds Rs. 50,000/-, is received without consideration by an Individual or a Hindu Undivided Family, in any Previous year from any person(s) on or after 1st April’ 2006, the whole of such aggregate value of such sum shall be chargeable under the Income from Other Sources".

However the Income Tax Act has also given certain circumstances which are excluded from the above provision; Where the sum of money is received:-

From any Relative; (Relative includes spouse, brother, sister of the Individual/ Spouse/ either of the Parents of the Individual, any Lineal ascendant/ descendant of the Individual/ Spouse.)
On the Occasion of the marriage of the Individual;
Under a Will through Inheritance;
In contemplation of death of the payer;
From any local authority;
From any fund/foundation/ Educational institution/ hospital/ medical institutions/ trust or any institution u/s 10(23C);
From any trust/ institution registered u/s 12AA.