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

Ms. Kavya Nair, a resident individual, received Rs 3,00,000 from her father on her wedding day as a gift and Rs 60,000 from her father's friend on the same occasion. As per the gift taxation rules for income from other sources, how much is taxable in her hands?

Nothing is taxable. Gifts received on the occasion of the recipient's own marriage are fully exempt from tax irrespective of the amount or the relationship with the donor, so both the father's and the friend's gifts fall outside income from other sources.

  1. ARs 60,000
  2. BRs 3,60,000
  3. CNilCorrect
  4. DRs 10,000

Explanation

Gifts received on the occasion of the recipient's marriage are exempt from tax, regardless of the amount or who gives them. Both the Rs 3,00,000 from the father (a relative) and Rs 60,000 from the friend are therefore exempt. Applying the Rs 50,000 limit to the friend's gift would be wrong because the marriage exemption overrides it.

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