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

Under the Income-tax Act, 2025, which of the following receipts by an individual is excluded from the operation of section 92(2)(m) by section 92(3)?

The Rs. 2,00,000 received from the spouse's brother is excluded. Section 92(3)(a) exempts receipts from a relative, and the definition of relative for an individual includes the brother or sister of the spouse. The friend, employer and neighbour are not relatives.

  1. ARs. 5,00,000 received from a friend to start a business
  2. BRs. 2,00,000 received from a spouse's brotherCorrect
  3. CRs. 3,00,000 received from an unrelated employer as a gift
  4. DRs. 1,00,000 received from a neighbour on a festival

Explanation

Section 92(3)(a) excludes sums received from any relative. Under section 92(5)(g), a relative of an individual includes the brother or sister of the spouse. The other three payers are not relatives and none of the other exclusions applies, so those receipts exceeding Rs. 50,000 are taxable.

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