Section 56(2) Gift Received In Cash and Kind

  1. Any sum of money received:

    Without consideration from a person the aggregate value of which exceeds Rs.50000/-, the whole of the aggregate value received is taxable

  1. Any immovable property received:

    Without consideration, but stamp value of such property which exceeds Rs.50000/-, such stamp value is chargeable to tax

    With consideration, which is less than the stamp duty value of property by an amount exceeding Rs.50000/-, Nothing is taxable

    1. Movable or any other property:

      Without consideration, but Fair market value of such property which exceeds Rs.50000/-, Fair market value of such property is chargeable to tax

      With consideration, which is less than the Fair market value of property by an amount exceeding Rs.50000/-

      Fair market value

      Less: Consideration

>50000 such amount chargeable to tax

When Gift Received is Exempted from Income Tax

Gift received from the following person/circumstances more than Rs.50000 is exempted from tax:

  • Money and property received from a relative.
  • Money and property received on the occasion of the marriage of the individual
  • Money and property received by way of will/ inheritance
  • Money and property received in contemplation of the death of the payer
  • Money and property received from a local authority
  • Money and property received from any fund, foundation, university, other educational institution, hospital, medical institution, any other trust or institution referred to in section 10(23C)
  • Money received from charitable institution registered under sec.12AA