Gifts Over 50,000 Taxable Under Section 56(2)(x) of Income Tax Act; Exceptions for Relatives, Marriage, Inheritance, COVID-19.
Section 56(2)(x) of the Income Tax Act addresses the taxability of gifts received by individuals or Hindu Undivided Families (HUF) on or after April 1, 2017. Gifts exceeding 50,000 in aggregate value are taxable as income from other sources. This includes money, immovable property, and other assets, with specific rules for gifts with or without consideration. Exceptions include gifts from relatives, on marriage, through inheritance, or from certain institutions. Special provisions apply for gifts related to COVID-19 treatment or death, with conditions specified by the Central Government.
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