Taxes Income Taxes

Taxability of gifts received by an assessee

Taxability of gifts received by an assessee
  1. Applicability: Individual and HUF
  2. Tax-ability: Any sum of money, aggregate value of which exceeds Rs.50,000, is received during the previous year without consideration, by an individual or a HUF from any person on or after 1/4/2006, then the whole of the aggregate of such sum will be taxable.
  3. Exceptions: Gifts received from the following persons not taxable-
    1. From a relative, or
    2. On the occasion of marriage of the individual, or
    3. Under a will or by way of inheritance, or
    4. In contemplation of death of the payer, or
    5. Any local authority, or
    6. Fund/ Foundation/ University/ educational institution or hospital or other medical institution or trust or institution referred u/s 10(23C), or
    7. Trust/ institution registered u/s 12AA
  4. Relative means
    1. Spouse of the individual,
    2. Brother or sister of the individual,
    3. Brother or sister of the spouse of the individual,
    4. Brother or sister of either of the parents of the individual,
    5. Any lineal ascendant or descendant of the individual,
    6. Any lineal ascendant or descendant of the spouse of the individual,
    7. Spouse of the person referred to in clauses (b) to (f) above
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