CAF-2 · Chapter 10 · Question 4 of 15
Mr. Ali received a cash gift of Rs. 1,000,000 from his father, and a gift of an antique painting worth Rs. 500,000 from his mother. What is the tax treatment of these gifts?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) The cash gift is taxable under 'Income from Other Sources', while the painting is exempt.
Explanation
Gifts received in the form of assets from relatives (like an ancestor) are exempt from tax. However, any gift received in *cash* even from relatives is taxable under the head "Income from Other Sources".
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