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CA Final · Direct Tax Laws & International Taxation · Income from Other Sources

Mr. Vikram Joshi, a resident individual, received the following during the tax year: (i) Rs. 2,00,000 from his wife's brother as a gift, (ii) Rs. 1,00,000 from a close friend on the occasion of Vikram's marriage, (iii) Rs. 80,000 from a colleague without consideration, and (iv) Rs. 30,000 from another colleague without consideration. Under sections 92(2)(m) and 92(3) of the Income-tax Act, 2025, what is the amount taxable under Income from other sources?

Rs. 1,10,000 is taxable. The gift from the wife's brother (a relative) and the gift on the individual's own marriage are excluded by section 92(3). The two colleagues' gifts total Rs. 1,10,000, exceeding Rs. 50,000, so the whole amount is charged.

  1. ARs. 1,10,000Correct
  2. BRs. 3,80,000
  3. CRs. 2,80,000
  4. DRs. 1,00,000

Explanation

Under section 92(3), sums from a relative (the spouse's brother is a relative under item (C) of the definition, as brother of the spouse) and sums received on the occasion of the individual's marriage are outside section 92(2)(m). Only the colleagues' gifts remain: 80,000 + 30,000 = Rs. 1,10,000, which exceeds Rs. 50,000, so the whole is taxable. Including the marriage gift or the relative's gift gives wrong totals.

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