Gift tax

If Gift received from 'relatives' as defined under Section 56(2)(vii), of I T Act, 1961; it will be taxfree. Otherwise taxable........

For details refer: Tutorials/Tax/treatment/gifts

relative include all whether in India or o/ s india

If you have received the gift from the following relatives, whether Resident or non resident, then it is exempted from tax

1. Spouse

2. Brother or sister

3. Brother or sister of the spouse

4. Brother or sister of parents

5. Any lineal ascendant or descendant ( Parents and grand parents )

6. Any lineal ascendant or descendant of the spouse ( Parents and grand parents )

7. Spouse of the person referred in points 2 to 6

if you receive gift on the occasion of your marriage then also it is exempt from income tax.

 

If the person from whom you received the gift does not fall under above relatives and the gift amount is less than Rs. 50,000 value, then it is exempt. if it exceeds Rs. 50,000 then taxable.

Section 56(2)(vi) provides that any ‘sum of money’ (in excess of the prescribed limit of `50,000)
received without consideration by an individual or HUF will be chargeable to Income Tax in the
hands of the recipient under the head ‘Income from Other Sources’.
However, receipts of money (a) from relatives or (b) on the occasion of marriage or (c) under a
will or inheritance or (d) in contemplation of death of payee or donor are outside the scope of the
provisions of Section 56(2)(vi) of the Income-tax Act.
Similarly, anything which is received in kind having ‘money’s worth’ i.e. property is also outside the