When GIFTS are Exempt from income tax ?

When GIFTS are Exempt from income tax ?

Gift of any amount received after 1.4.06 is exempt if received

1. From Relatives or ,

2. On the occasion of marriage or,

3. Under a WILL or,

4. By way of inheritance or,

5.In contemplation of Death.

6.From any local authority 7

7.From any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

8. from any trust or institution registered under section 12AA.

In all other cases, gift above Rs 50000 in aggregate from one person or more than one person, who are not RELATIVEs , same shall be TAXABLE as "Income from other sources " under Section 56(2)(v) of the I T Act from Asst Yr 2006-07 .So gift upto Rs 50000 is not taxable , but gift in aggregate of Rs 50001 is fully taxable .

So who are Relatives ?

1. Your spouse

2. Your brother or sister

3. Your spouse's brother or sister

4. Your parents' brother or sister

5. Your lineal ascendants or descendents

6. Your spouse's ascendants or descendents

7. Spouse of persons named in 2 to 6 above.

Follow these principal before accepting gifts ?

Remember, law is well settled that the donee has to prove Identification,genuineness o