Section 56(2) states that any some of money exceeding 50,000 received without consideration by cash or kind by an individual or HUF is chargeable to tax as an income from other sources which could subject to certain inclusion or exclusion. Such gift taxes need to be paid as per income tax slab applicable on any individual. For example: you have asked your colleague to transfer INR 60,000 in your account and you have settled the transaction offline through cash for these 60,000 Rs. Income tax department can ask you to pay the income tax as they will consider I income from other sources. And tax will be implemented on the base of income tax slab for this amount.
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What is Gift tax in India?
