Beware of Receiving Money

Beware of Receiving Money

Any gift received from or given to non relatives above ` 50,000 is taxable. If you receive more than ` 50,000 during a financial year without any consideration,then, the entire sum is taxable. Below
mentioned points are some exceptions to the case:
• On the occasion of marriage
• Under a will or by way of inheritance
• Gift from a relative
• In contemplation of death
The limit of ` 50,000 is for the entire financial year (Apr 1, 2010 to Mar 31, 2011),irrespective of the number of people from whom you have received the money. For example if you received Rs. 10,000 from six persons, you will have to pay tax on the entire sum of ` 60,000.Also a gift received in kind, such as
property, paintings, bonds, debentures and jewellery without consideration is also taxable. If you are gifted a painting worth` 2 lakh, it will be included in your income and taxed as per your slabs.However if a property is received on consideration which is less than stamp duty value, then it will not be included in your income.