Urgent ....... u/s 56(2)(vii) aggregate gift taxable

Dear Sir... I feel the entire amount of Rs. 86,000/- shall be taxable as Income from Other Sources for A.Y. 2014-15 in both the cases.... Beacuse in case of gift in the form of money, Section 56(2)(vii) uses the word "a sum of money exceeding Rs. 50,000".... and hence in the given situation, since sum of amount received during the year exceeds Rs. 50,000, entire gift of Rs. 86,000 shall be taxable.... Thank you....

Yes,  Mrunmayee Limaye is correct!!!

Any sum of money whether in kind or in the form of cheque or in cash where Aggregate of such gifts received in that Financial year exceeds rs 50000,you are liable to pay tax under the head" Income from other sources".So it is immaterial whether it is in cash or cheque.Furthur Entire amount of gift is taxable if the value of gift in terms of money exceeds rs50000,so there is No basic exemption of rs50000 for gifts and entire amount subjected to tax.Therefore entire 86000 willbe taxable

Irrespective of date and way (I.e Cash or Cheque) the whole amount is taxable if it exeecs exemption limit

As per section 56(2)(vii) where any sum of money exceeding Rs.50000 is received without consideration by an individual or a Hindu undivided family from any unrelated person, the whole of such sum shall be taxable.