Query on gift tax

@ VIKAS... I have know that gift only Rs 30000 / year is tax free... please put more light on it... I may be wrong...

nope....gift received from relative is fully exempt, ur case arises if it is other than relatives ofcourse this has been increased to 50000 in recent years i guess.

sec 56(2)vi: where any sum of money, the aggregate value of which exceeds fifty thousand rupees, is received without consideration, by an individual or a Hindu undivided family, in any previous year from any person or persons on or after the 1st day of April, 2006 ^1a[but before the 1st day of October, 2009], the whole of the aggregate value of such sum:

                Provided that this clause shall not apply to any sum of money received—

      (a)  from any relative; or

      (b)  on the occasion of the marriage of the individual; or

      (c)  under a will or by way of inheritance; or

      (d)  in contemplation of death of the payer; or

      (e)  from any local authority as defined in the Explanation to clause (20) of section 10; or

      (f)  from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

      (g)  from any trust or institution registered under section 12AA.

                Explanation.—For the purposes of this clause, “relative” means—

       (i)  spouse of the individual;

      (ii)  brother or sister of the individual;

     (iii)  brother or sister of the spouse of the individual;

     (iv)  brother or sister of either of the parents of the individual;

      (v)  any lineal ascendant or descendant of the individual;

     (vi)  any lineal ascendant or descendant of the spouse of the individual;

    (vii)  spouse of the person referred to in clauses (ii) to (vi);]