Did you receive gift cash? It is taxable, but not for these individuals
Gifts in form of either cash, cheque, draft, etc. they all are taxable. However, not all have to pay taxes even if they have received over Rs 50,000 cash gift.
Did you know that cash received as gift is also taxable in India? However the income tax department does have an eligibility criteria for this. As per the IT-department guidelines, any sum received without consideration by an individual or HUF is taxable if the aggregate value of such sum received during the year exceeds Rs 50,000. Sadly, but quite true, if you gift cash value is beyond Rs 50,000, then you will come under the income tax bracket. These taxes are included as income from other sources. Gifts in form of either cash, cheque, draft, etc. they all are taxable. However, not all have to pay taxes even if they have received over Rs 50,000 cash gift.
Firstly, one should note that, the taxability of the gift is determined on the basis of the aggregate value of gift received during the year, and not on the basis of individual gift. Hence, if the aggregate value of gifts received during a year exceeds Rs 50,000, then value of such gifts received will be charged to tax.
However, the department also reveals that, in the following cases nothing will be charged to tax in respect of any sum of money received by an Individual or HUF without any consideration, if the same is received:
If the amount is from any relative or by a HUF from its members; or on the occasion of the marriage of the individual.
Also, if you this amount arises from a will/ by way of inheritance, or in contemplation of death of the payer or donor as the case may be.
Further, even if money is gifted from a local authority as defined under Explanation to clause (20) of section 10 of the Income-tax Act, 1961. Same applies to any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10.
Even if the amount comes from any fund, trust, institution, any university, other educational institution, any hospital, other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or (applicable if the property is received on or after 1st day of April, 2017).
Meanwhile, if you have received gift from a trust or institution registered under section 12AA; or from a trust or institution registered under section 12A, they will not be taxes.
Finally, from an Individual by a trust created or established solely for the benefit of relative of the Individual. Any sum received by the way which is not regarded as transfer accordance with section 47.
Hence, if you receive any gift cash from the above mentioned authority or medium, then you must note they are not taxable.