treatment of gift received from friend and relatives ????

 hey anoop

as per section 56(2),in following cases gift is not treated as income:

1.Received from relatives.

2.Received on the occasion of marriage of the individual.

3.Received under will, inheritence.

4.Received from non relatives on other occasion exempt upto aggregate of Rs.50000/-

okie..

thanks buddy..........

Also add gifts received in anticipation of donor's death to Manish's list..

Pls find the relevant provision of the law from section 56 of the income tax act

 on or after the 1st day of April, 2006 ^1a[but before the 1st day of October, 2009],(Applicable to gifts in cash, Cheque etc.

(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:

Whether gifts in kind will also be taxable w.e.f.1-10-2009?

yes, if the value of the same excceds the amount of 50,000/- from a person who do not fit into the definition of Relative.

sunil 

whether gift above rs 50000 from relative will also be taxable after1/10/2009 ???????

So the inference is

All gifts whether in cash or kind is taxable if it exceeds Rs.50,000 received from anyperson including relative

Whether the term "brother or sister of the individual" referred to in the definition of relative for the purpose of section 56(2) includes cousin of an individual or only real brothers & sisters are covered here???

Mr. Simarpreet Singh

I think cousins are not covered...

Mr.Sourav...

Gift exceeding Rs.50000/- is taxable includes both cash and kind....

as per your eg. it is taxable....

W.e.f. 01.10.2009, the exemption of gift in cash upto an amount of Rs.50,000/- & further exemptions of gift of movable property & gift of immovable property each of Rs.50,000/- are available. Thus we have three exemption limits of Rs.50,000/- each i.e. total Rs.1,50,000/- per year.

Thus if Rs.30,000/- is received in cash & a gift in kind of Rs.30,000/- is received in kind, the whole amount is exempt...

well, the last two views are contradictory............somebody clarify!