Akansha received the following gifts on her birthday on 3rd July 2020: (i) Car worth ₹6,78,000 from her brother. (ii) Jewellery worth ₹28,000 from her husband cousin. (iii) Bonds worth ₹36,000 from friend A and debenture

As per provision of section 56(2)(x) of the Income-tax Act, 1961, where any person receives, in any previous year, from any person or persons any property, other than immovable property: without consideration, the aggregate fair market value of which exceeds ₹50,000, the whole of the aggregate fair market value of such property; for a consideration which is less than the aggregate fair market value of the property by an amount exceeding ₹50,000, the aggregate fair market value of such property as exceeds such consideration. Shall be taxable under the head income from other sources. However, there shall not be levy of tax, where the sum of money or property is received from any 'relative' and the word relative in case of an individual has been defined as below: spouse of the individual; brother or sister of the individual; brother or sister of the spouse of the individual; brother or sister of either of the parents of the individual; any lineal ascendant or descendant of the individual; any lineal ascendant or descendant of the spouse of the individual; spouse of the person referred to in items (B) to (F); and 'property' means immovable property being land or building or both; shares and securities; jewellery; archaeological collections; drawings; paintings; sculptures; any work of art; or bullion. (i) Car worth ₹6,78,000 received by Ms. Akansha from her brother is not chargeable to tax as the car is not covered under the definition of 'Property' as per section 56(2)(x) of the Income Tax Act, 1961. Further, the same will also not be taxable as car has been received from her brother who is covered in the definition of a Relative. (ii) Jewellery worth ₹28,000 received by Ms. Akansha from her husband cousin is chargeable to tax since, her husband cousin is not covered under the definition of 'relative' and jewellery is well covered in the definition of 'property'. (iii) Bonds and debentures worth ₹48,000 [₹36,000 + ₹12,000] received by Ms. Akansha from her friends will be chargeable to tax since friends is not covered under the definition of relatives and bond and debentures are securities, covered within the definition of property. In view of above, the aggregate fair market value of taxable Gift received during the previous year exceeding ₹50,000, i.e., ₹76,000 [₹28,000 + ₹48,000]. Therefore, whole of the amount i.e. ₹76,000 will be taxable during the previous year 2020-21.