27 December 2011
If such cash gift is received from relatives as defined in Sec 56(2)(vii) there is no limit and will be exempt from Tax i.e. even cash gifts of more than Rs 50000/- will be exempt.
If received from other than relatives limit is Rs 50000/-. If the cash gift exceeds Rs 50000/- the entire amount will be taxable. Say if Rs 60000/- received, Rs 60000/- will be added to your income under the head income from other sources.
27 December 2011
Relatives u/s 56(2)(vii) from whom Gift is permissible under Income Tax Act, 1961 (i) spouse of the individual; (ii) brother or sister of the individual; (iii) brother or sister of the spouse of the individual; (iv) brother or sister of either of the parents of the individual; (v) any lineal ascendant or descendant of the individual; (vi) any lineal ascendant or descendant of the spouse of the individual; (vii) spouse of the person referred to in clauses (ii) to (vi)
Also gifts received from anybody on occasion of marriage is fully exempt from tax.
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