The provision states that, if the aggregate sum of money received during any financial year without consideration exceeds Rs. 50,000 by an individual or HUF from any person or persons in aggregate (other than relatives etc. or in instances as discussed below), the whole such sum shall be chargeable to income tax under income tax under the head “Income from other sources”.

The above provisions shall not apply to any sum of money received –

(a) from any relatives; or
(b) on the occasion of the marriage of the individual ;
(c) in contemplation of death of the prayer;
(d) from any local authority as defined in explanation to section 10 (20); or
(e) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in section 10 (23C); or
(f) from any trust or institution registered under section 12AA.

For the above, the term “relative” means –

(i) Spouse of the individual;
(ii) Brother or sister of the individual;
(iii) Brother or sister of the spouse of the individual;
(iv) Brother or sister of either of the parents of the individual;
(v) Any lineal ascendant or descendant of the individuals;
(vi) Any lineal ascendant or descendant of spouse of the individuals;
(vii) Spouse of the persons referred to in clauses (ii) to (vi)

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