- Applicability: Individual and HUF
- 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.
- Exceptions: Gifts received from the following persons not taxable-
- From a relative, or
- On the occasion of marriage of the individual, or
- Under a will or by way of inheritance, or
- In contemplation of death of the payer, or
- Any local authority, or
- Fund/ Foundation/ University/ educational institution or hospital or other medical institution or trust or institution referred u/s 10(23C), or
- Trust/ institution registered u/s 12AA
- Relative means
- Spouse of the individual,
- Brother or sister of the individual,
- Brother or sister of the spouse of the individual,
- Brother or sister of either of the parents of the individual,
- Any lineal ascendant or descendant of the individual,
- Any lineal ascendant or descendant of the spouse of the individual,
- Spouse of the person referred to in clauses (b) to (f) above