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CS Executive · Tax Laws and Practice · Income from Other Sources

Ms. Kavya Nair, a resident individual, receives the following during the tax year, none of it from a relative or on a occasion covered by the exemptions: (a) Rs. 30,000 cash gift from a friend, and (b) Rs. 35,000 cash gift from another friend. What amount is taxable under section 92(2)(m) of the Income-tax Act, 2025?

Rs. 65,000 is taxable. Money received without consideration from one or more persons is aggregated for the tax year, and once the total exceeds Rs. 50,000 the whole sum is taxed, not just the excess. Here 30,000 plus 35,000 equals 65,000, which crosses the limit.

  1. ANil
  2. BRs. 15,000
  3. CRs. 65,000Correct
  4. DRs. 30,000

Explanation

Section 92(2)(m)(i) taxes the whole sum when the total of money received without consideration from any person or persons in the tax year exceeds Rs. 50,000. Total = 30,000 + 35,000 = Rs. 65,000, which exceeds Rs. 50,000, so the whole Rs. 65,000 is taxable. Taxing only the excess (Rs. 15,000) is wrong because the provision taxes the whole sum, not the excess.

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