20 October 2010
X receives a cash gift of Rs. 50,000/- on 15th June, 2009. Again he receives a cash gift of Rs. 50,000/= on 2nd October, 2009. What will be the amount to be included in Income from other Sources for the Assessment Year 2010-11?
20 October 2010
Taxability depends on from whom gift is received. Any amount received from relatives specified u/s 56(vii) or on occasion of marriage is exempt from tax.
Relative Means
1. Spouse of the individual 2. Brother or sister 3. Brother or sister of the spouse 4. Brother or sister of either of the parents of the individual 5. Any lineal ascendants or descendant of the individual 6. And lineal ascendant or descendant of the spouse 7. Spouse of the person referred to in (2) to (6)
Any amount received in excess of Rs 50000/- from persons other than relatives/entities as specified u/s 56(vii) will be taxable.
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