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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Income from Other Sources

Mr. Rohan Mehta, a resident individual, received the following gifts during the year: Rs 30,000 in cash from his friend, and Rs 40,000 as a gift voucher from his employer's well-wisher colleague circle. Both are from non-relatives. Assuming the aggregate-limit rule for gifts from non-relatives, how much is taxable in his hands as Income from Other Sources?

The entire Rs 70,000 is taxable. Gifts from non-relatives aggregating more than Rs 50,000 in a year are taxed in full under Income from Other Sources, not merely the excess above the threshold, and neither gift here comes from a relative.

  1. ANil
  2. BRs 20,000
  3. CRs 70,000Correct
  4. DRs 40,000

Explanation

Aggregate value of gifts from non-relatives is Rs 30,000 + Rs 40,000 = Rs 70,000. This exceeds the Rs 50,000 aggregate threshold, so the whole amount, not just the excess, is taxable. Taxing only the excess (Rs 20,000) is the common mistake.

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