04 September 2012
Any sum of money, of the specified aggregate value received from any person without consideration by an individual or Hindu Undivided Family on or after 01.04.2006 is taxable.
However, exemption is granted in respect of any sum of money received – (a) from any relative; or (b) on the occasion of marriage of individual; or (c) under a Will or by way of inheritance; or (d) in contemplation of death of the payer or (e) from a local authority; or (f) from any fund, foundation, university, other educational institution, hospital, medical institution, any trust or institution referred to in Section 10(23C); or (g) From charitable institutions registered u/s 12AA. In respect of above gifts, there is no ceiling limit and therefore, entire amount is exempt from chargeability. The defintion of the term ‘relative’ for this purpose is as under : (a) husband or wife of individual; (b) brother or sister of the individual; (c) brother of husband of the individual; (d) brother of wife of the individual; (e) sister of husband of the individual; (f) sister of wife of the individual; (g) brother of father of the individual; (h) brother of mother of the individual; (i) sister of father of the individual; (j) sister of mother of the individual; (k) lineal ascendant of the individual (say, grandfather)
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