4. Amount received as gifts: Any gift received in the form of cash or credit by a non-relative is subjected to tax according to the Finance Act, 2004. According to Section 10 (39) the amount received to the extent of 50, 000 will be exempt from tax payment. Similarly, any amounts received on the occasion of marriage from non-relatives are also considered to be tax exempt. But remember the gifts received from relatives whether in the form of cash or credit are completely tax free, as specified in the section.

5. Life Insurance Receipts: Any amount received under a Life Insurance Policy including the bonus amount is fully exempt from tax according to Section 10 (10D). Also, the amount received in case of death is fully exempt from tax. Thus, any amount of money received through life insurance policies would be exempt from income tax.