Section 56(2)(X) of the Income Tax Act explains provisions regarding taxation of gifts.
A gift can be given by one person to another and it can be in the form of Cash. Movable property or Immovable property.
Income Tax Act has laid down certain restrictions for the taxation of Gifts
| Nature of Gift | Monetary limit | Taxability |
| Cash Consideration | If Amt> 50,000 | Entire amount taxable |
| Immovable property | No consideration & Stamp duty value> 50,000 | Stamp duty value of property is Taxable. |
| Immovable property | Inadequate consideration Stamp duty value> Consideration received by 50,000 | Stamp duty value minus consideration received is taxable |
| Movable Property | Without consideration Fair market value> 50,000 | FMV of such property is Taxable |
| Movable Property | Inadequate consideration FMV> Consideration received by 50,000 | FMV minus consideration received is taxable |
However, this section is not applicable in case a gift is received from
(I)from any relative; or
(II) on the occasion of the marriage of the individual; or
(III) under a will or by way of inheritance; or
(IV) in contemplation of death of the payer or donor, as the case may be; or
(V) from any local authority; or
(VI) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution; or
(VII) from or by any trust or institution registered under 73[section 12A or section 12AA or section 12AB]; or
(VIII) from an individual by a trust created or established solely for the benefit of relative of the individual