Mr.X is going to receive Rs.1,00,000 from a third party (not a relative) as a gift. If Mr.X's Income from Other Sources is Rs.50000 and he has no other income. What would be the tax on the gift? Will the Rs2Lakh exemption cover the Total Income or would the Gift be taxed separately??
There is no gift tax . The gift is treated as income in the hands of donee except for cases of gift recd from relatives as defined . Thereafte , normal income tax rates are applicable , as applicable to the donee.
But if the other income of the assessee consists of "Income from savings bank account exceeding 10,000/-" , the assessee should file the return.
Hi Anurag,
Rs. 2 lacs exemption will cover that. If total income is below Rs. 2 lacs, it wont be taxed.
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