GOVT. TIGHTEN NOOSE ON CASH GIFT

Exemption limit for gift increased to Rs.50,000/-. Provision of Section 56(a)(v) revised, whereby any sum of money received without consideration by an individual or HUF is considered as income in the hands of recipient, if the aggregate value of money received exceeds Rs.50,000/- during the year irrespective of the fact whether the same has been given on different dates or from different persons. The above amendment shall be effective in respect of the sum of money/gift received on or after the 1st day of April, 2006.