Explain the Taxability of Gifts received from Non-Relatives?

Greetings from Ssk Advisory. We are happy to resolve your query.

Please note that relative for the purpose of Section 56(2)(x) includes your spouse, your brother or sister, brother or sister of your spouse, brother or sister of your parents, your grand-children.

Hence, gifts received from your niece will be taxable since she is not included in the list of the term "relative" for the purpose Section 52(2)(x). Additionally, since the gifts amounts to more than Rs. 50,000/-, the entire amount of Rs. 95,000/- is taxable under the head Income from Other Sources at normal rates.

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I am a member of my father's HUF. I have transferred my property to the HUF. Is this transaction taxable to the HUF?

Greetings from Ssk Advisory. We are happy to resolve your query.

Please note that since you are a member of the HUF, you are considered as relative of the HUF. Thus when you transfer your property to the HUF in which you are a member, there is not tax implication for HUF on transfer as per Section 56(2)(x).

However, please note that in case if the HUF decides to earn money from such property (for example by renting the property), it would be taxable in your tax return as per Section 64(2).

Hope we have been able to solve your query. Please comment below in case of any other queries or questions.