BANGALORE: During the rule of last government, consumers have already faced a railway price rise, petrol and diesel increase and rising inflationary pressure. Now under new government and newly made budget no longer there exists a separate Gift Tax Act. In simple words if you receive a gift or even win the lottery next time it could be included in your gross total income and will be taxable reports TNN.

Gift tax in India

As per section 56(2) indicates any sum of money received exceeding 50,000 without consideration by individual or HUF is chargeable to tax as income from other sources subject to certain exclusions and exemptions. Such gift tax needs to be paid as per income tax slab applicable to individuals. `Income from other sources' includes winnings from lotteries, interest income, to name a few, fall under this head.

Exemptions will be available but not for all and hence `gifts' would be taxable in your hands. Let’s have a look at some of the gifts that are tax exempt:

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