Question

The amount received by any relative of a salaried employee as gift from another salaried employee is

Answer 1

The word “ Relatives” has been defined in the Income Tax Act. However, if the gift is received from any individual or HUF other than the relatives then it shall be exempt up to Rs. 50,000 during any financial year.

The word “ Relatives” has been defined in the Income Tax Act. However, if the gift is received from any individual or HUF other than the relatives then it shall be exempt up to Rs. 50,000 during any financial year.Such gifts are taxable under the head 'Income from Other Sources' if they don't fall in the exempt categories.