Are there any cases in which sum of money or any property received without or inadequate consideration, received by an individual or HUF is not charged to tax?

In the following cases nothing will be charged to tax in respect of any sum of money or property received by an Individual or HUF without any consideration or inadequate consideration, if the same is received:​

  1. from any relative; or
  2. on the occasion of the marriage of the individual; or
  3. under a will/ by way of inheritance; or
  4. in contemplation of death of the payer or donor as the case may be; or
  5. from a local authority as defined under Explanation to clause (20) of section 10 of the Income-tax Act, 1961; or
  6. from any fund, foundation, university, other educational institution, hospital or other medical institution, any trust or institution referred to in section 10 or
  7. by any fund, trust, institution, any university, other educational institution, any hospital, other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or  (applicable if the property is received on or after 1st day of April, 2017)
  8. from or by any trust or institution registered under section 12A or section 12AA; or
  9. from an individual by a trust created or established solely for the benefit of relative of the individual. )
  10. any sum received by the way which is not regarded as transfer accordance with section 47 (i)/(iv)/(v)/(vi)/(vib)/(vid)/(vii)

Note – “relative” means,—

  • in case of an individual :
    1. spouse of the individual;
    2. brother or sister of the individual;
    3. brother or sister of the spouse of the individual;
    4. brother or sister of either of the parents of the individual;
    5. any lineal ascendant or descendant of the individual;
    6. any lineal ascendant or descendant of the spouse of the individual;
    7. spouse of the person referred to in items (2) to (6); and
  • in case of a Hindu undivided family, any member thereof;

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