Gift from a non relative to an individual, or HUF up to Rs. 50000/- during financial year is tax free in the hands of the recepient. However if the amount of gift exceeds this limit, the entire amount of the gift is added to the income for tax purpose. However, there is no limit for tax-free gift in cash from a relative of the individual - Not HUF; as HUF can not have a relative.
RE:Gift in cash exceeding 50000/- from a non relative
by Amitabh on May 13, 2007 11:13 AM Permalink
You are right.The concession of relative in case of gifts is meant only for individuals.However,if a gift is received by will or inheritence,it will be exepmt from tax without any limit even for an HUF.In this case,it is not necessary that gift should come from a relative.
