Any sum of money received without consideration—monetary gift may be received in cash or in kind; i.e., cheque, draft, etc.,—by an individual/ HUF will be charged to tax if the aggregate value of such sum of money received during the year exceeds Rs 50,000. However, monetary gift received by an individual or from member by HUF will not be chargeable to tax if it is received from relatives by an individual or is received on the occasion of marriage of the individual or is received under will/ by way of inheritance.
As per Section 2(41) of the Income Tax Act, 1961 ‘relative’ in relation to an individual means spouse of the individual, brother or sister of the individual or the spouse, brother or sister of either of the parents of the individual or parents.
